Taiwan has ruled out any agreement with the United States to divide semiconductor production equally, its top tariff negotiator said on Wednesday, stressing that the matter was not even raised during the recent trade discussions.
Vice Premier Cheng Li-chiun, who is leading the negotiations with Washington, told reporters upon her return, “Our negotiating team has never made any commitment to a 50-50 split on chips. Rest assured, we did not discuss this issue during this round of talks, nor would we agree to such conditions,” according to the Central News Agency.
The comments came after US Secretary of Commerce Howard Lutnick told News Nation that Washington’s pitch was for a 50-50 production split, even though the bulk of the world’s chips are currently manufactured in Taiwan. The US Commerce Department and the Office of the United States Trade Representative did not respond to requests for comment outside business hours.
Taiwan, home to chip giant TSMC, runs a significant trade surplus with the US, with its exports facing a 20% tariff. TSMC itself is investing US$165 billion in new factories in Arizona to support American supply chains, though most of its output will remain in Taiwan as demand for artificial intelligence applications surges.
Premier Cho Jung-tai, addressing parliament on Tuesday, noted that Cheng had held several rounds of talks with Washington, describing the latest phase as “the most critical substantive consultations”. Cheng confirmed that “detailed” discussions had taken place, resulting in “certain progress” on tariffs.
Meanwhile, Taiwan’s presidential office said that President Lai Ching-te met with Luke J. Lindberg, Under Secretary for Trade and Foreign Agricultural Affairs at the US Department of Agriculture. Lai highlighted Taiwan’s commitment to purchasing US$10 billion worth of agricultural goods, including soybeans, wheat, corn and beef, over the next four years.
Reuters
