Taiwan has rejected a suggestion from the US to split global semiconductor production 50-50, a proposal reportedly raised by US Commerce Secretary Howard Lutnick, a report has said, adding that the country’s vice premier Cheng Li-chiun has stated that the arrangement was “not discussed” during the latest round of trade negotiations.
Speaking to reporters upon her return to Taiwan Taoyuan International Airport, Cheng contradicted remarks made by Secretary Lutnick, according to Taiwan’s Central News Agency.
Cheng said that the recent talks focused on standard trade concerns, including lowering tariff rates, securing exemptions from tariff stacking, and reducing levies on Taiwanese exports under Section 232 of the US Trade Expansion Act.
The US initiated a Section 232 investigation into potential tariffs on semiconductor imports in April, which remains ongoing.
US Commerce Secretary Howard Lutnick said the country ‘need to make our own chips'
Lutnick, in a recent interview with NewsNation, had stated: “The conversation we've had with Taiwan [is] that it's vital for you to have us [the US] produce 50 percent.”
“The idea that I pitched them [Taiwan] was let's get to 50-50. We're producing half, you're producing half,” he added.
“My objective, and this administration’s objective, is to get chip manufacturing significantly onshored — we need to make our own chips,” Lutnick said.
Notably, President Donald Trump had also taken aim at the island’s dominance in chips earlier this year, saying that the country ‘stole’ the US′ chip business.
50-50 condition ‘against supply chain cooperation’
In a statement released on Wednesday (October 1), the Executive Yuan – the country's highest administrative organ – reiterated Taiwan's opposition, saying the 50-50 condition “goes against Taiwan-U.S. supply chain cooperation.”
The proposal has drawn swift and sharp condemnation from Taiwan's political opposition. Kuomintang (KMT) Chairman Eric Chu stated Wednesday that "No one can sell out Taiwan or TSMC , and no one can undermine Taiwan's silicon shield."
KMT lawmaker Hsu Yu-chen previously characterised the proposal as an act of exploitation rather than a trade agreement. Separately, Taiwan People's Party (TPP) Chairman Huang Kuo-chang called the proposal an attempt to “hollow out the foundations of Taiwan's technology sector.”
Speaking to reporters upon her return to Taiwan Taoyuan International Airport, Cheng contradicted remarks made by Secretary Lutnick, according to Taiwan’s Central News Agency.
Cheng said that the recent talks focused on standard trade concerns, including lowering tariff rates, securing exemptions from tariff stacking, and reducing levies on Taiwanese exports under Section 232 of the US Trade Expansion Act.
The US initiated a Section 232 investigation into potential tariffs on semiconductor imports in April, which remains ongoing.
US Commerce Secretary Howard Lutnick said the country ‘need to make our own chips'
Lutnick, in a recent interview with NewsNation, had stated: “The conversation we've had with Taiwan [is] that it's vital for you to have us [the US] produce 50 percent.”
“The idea that I pitched them [Taiwan] was let's get to 50-50. We're producing half, you're producing half,” he added.
“My objective, and this administration’s objective, is to get chip manufacturing significantly onshored — we need to make our own chips,” Lutnick said.
Notably, President Donald Trump had also taken aim at the island’s dominance in chips earlier this year, saying that the country ‘stole’ the US′ chip business.
50-50 condition ‘against supply chain cooperation’
In a statement released on Wednesday (October 1), the Executive Yuan – the country's highest administrative organ – reiterated Taiwan's opposition, saying the 50-50 condition “goes against Taiwan-U.S. supply chain cooperation.”
The proposal has drawn swift and sharp condemnation from Taiwan's political opposition. Kuomintang (KMT) Chairman Eric Chu stated Wednesday that "No one can sell out Taiwan or TSMC , and no one can undermine Taiwan's silicon shield."
KMT lawmaker Hsu Yu-chen previously characterised the proposal as an act of exploitation rather than a trade agreement. Separately, Taiwan People's Party (TPP) Chairman Huang Kuo-chang called the proposal an attempt to “hollow out the foundations of Taiwan's technology sector.”
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