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Taiwan says 40% shift of chip capacity to US is 'impossible'

Taiwan's Vice Premier says the island's semiconductor ecosystem built over decades cannot be relocated despite $165 billion in investments by Taiwanese firms in the U.S.

  • In a televised interview, Taiwan's lead negotiator Cheng Li-chiun said relocating 40 or 50% of production capacity to the United States is impossible.
  • Washington's push included a 40% target floated by Howard Lutnick, U.S. Commerce Secretary, and a deal last month to cut tariffs to 15% while Taiwan agreed to increase investment.
  • Taiwanese firms pledged US$250 billion in U.S. investments plus US$250 billion in credit guarantees, with Taiwan's capacity far exceeding overseas investments, Cheng said.
  • Taiwan's negotiators said Taiwan will not relocate its science parks but can share expertise, and the deal now awaits approval from Taiwan's opposition-controlled Legislature.
  • U.S. officials argued semiconductor production should not all be 80 miles from China, while Howard Lutnick warned tariffs on Taiwan could rise to 100% if reshoring fails; Taiwan says expansion depends on staying rooted at home.
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Taiwan strongly rejects the idea of moving 40% of its semiconductor manufacturing capacity to the United States, calling it “impossible.”

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Bias Distribution

  • 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left

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Firstpost News broke the news in Mumbai, India on Monday, February 9, 2026.
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