US, Feb 09 : Taiwan has dismissed the possibility of transferring 40% of its semiconductor production capacity to the United States, with Vice Premier Cheng Li-chiun stating that the island’s deeply established chip ecosystem cannot simply be moved abroad.
In an interview with Taiwanese broadcaster CTS, Cheng said she had conveyed this position directly to American officials, emphasising that the industry developed over decades remains anchored in Taiwan. She added that while overseas expansion is possible, it would not come at the expense of domestic growth.
Cheng underscored that overall manufacturing capability on the island is expected to increase, even as Taiwanese firms pursue international investments, including in the US. Such global expansion, she noted, is contingent on maintaining strong roots at home and continuing to build local capacity.
Her remarks follow calls from US Commerce Secretary Howard Lutnick for a substantial relocation of semiconductor manufacturing, arguing that concentrating production so close to China poses strategic risks. Lutnick has said the administration aims to secure a 40% share of leading edge chip production in the US and has suggested tariffs on Taiwanese goods could rise sharply if that objective is not met.
Taiwan recently reached an agreement with Washington to reduce tariffs on its exports to 15% from 20%, alongside a commitment to boost investment in the American market. However, Cheng clarified that Taiwan’s science parks would not be shifted overseas, though the island is open to sharing expertise to help the US cultivate its own semiconductor clusters.
She expressed confidence that Taiwan’s combined capacity spanning existing facilities, projects under construction, advanced packaging, and the wider supply chain—would ultimately surpass the scale of its investments in any foreign destination.