Half of the semiconductor production is to be held in the USA? Taiwan will not accept the contract with Washington

Taiwan will not accept the agreement with Washington, which would assume that half of the production of semiconductors will take place in the USA-said Deputy Prime Minister Cheng Li-Chiun on Wednesday. This concept was rejected in the context of commercial negotiations. The authorities in Taipei described this idea as unacceptable to the security of the country.

It was a response to the suggestion of the American minister (secretary) of Howard Lutnick's trade, who during the past weekend stated that the US proposal for Taiwan is the division of semiconductors production in a ratio of 50:50.

After returning from commercial talks in Washington Cheng, the main negotiator of the government in Taipei, strongly denied that such a topic would be raised.

– Our negotiating team has never committed to dividing 50:50 in the production of chips. I assure you that we did not discuss this issue during this round of talks, nor would we agree to such conditions – she said, cited by the state agency CNA.

Taiwan is the seat of TSMC, the leader of the global contract production market for semiconductors, which will invest $ 165 billion in factory in Arizona, but most of its production intends to keep it on the island.

For Taipei, domination in this industry is crucial not only for the economy, but also for security. Production concentration creates so -called A silicon shield that is to protect the island from Chinese invasion and provide US support. Despite earlier concessions, such as increasing investments in the United States, Taiwan recognizes control over the production of chips as not subject to negotiations.

Taiwan is currently noting a significant commercial surplus in the exchange with the United States, and therefore President Donald Trump took the import of Taiwan products to the USA 20 % duty.

The government in Taipei is still counting on negotiating more favorable rates in ongoing conversations. According to Cheng, the last round of negotiations brought “some progress” in this matter.

Krzysztof Pawliszak (PAP)

KRP/ MAL/