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Taiwan Rejects US Demand for 50-50 Chip Split as Washington Weighs New Tariffs

The U.S. aims to cut Taiwan’s semiconductor share from 90% to 50% by boosting domestic chip production to 40%, requiring over $500 billion in U.S. investments.

  • Taiwan has rejected a U.S. proposal for a 50-50 split in semiconductor production, as confirmed by Vice Premier Cheng Li-chiun, who said Taiwan would not accept such conditions.
  • Cheng emphasized that Taiwan's negotiation team never committed to a 50-50 split, and that the issue was not discussed during their recent talks in Washington.
  • The U.S. aims to increase domestic chip production due to national security concerns, while Taiwan continues to prioritize its technological dominance and maintain its production capacity abroad.
  • Taiwan produces over half of the world's semiconductors, and its significant trade with the U.S. is at risk due to a 20% tariff imposed by the Trump administration.
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Taiwanese Deputy Prime Minister returned to Taipei after participating in the fifth round of negotiations with the US.

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Lean Left

Taiwan will not agree to a split of chip production, with 50 percent domestic and 50 percent in the U.S. It also rejects the possibility of this being a framework for trade negotiations with the world's largest economy.

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Tom's Hardware broke the news in on Sunday, September 28, 2025.
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