Impossible to shift 40% of our chip capacity to US: Taiwan
The semiconductor industry has been a topic of intense discussion in recent years, with countries around the world vying for a larger share of the global chip market. Taiwan, in particular, has been at the forefront of this conversation, given its significant contribution to the global semiconductor supply chain. However, in a recent statement, Taiwan’s Vice Premier Cheng Li-chiun has made it clear that shifting 40% of the country’s semiconductor capacity to the US is “impossible”.
This statement comes amidst growing pressure from the US government on Taiwanese chip firms to relocate their manufacturing facilities to the United States. Earlier, US Commerce Secretary Howard Lutnick warned that Taiwanese chip firms could face a 100% tariff if they fail to build in the US. This threat has sparked concerns among industry experts and raised questions about the feasibility of such a massive shift in production capacity.
According to Vice Premier Cheng Li-chiun, Taiwan’s overall capacity in the semiconductor industry will continue to grow, but the country can expand its presence in the US through other means. “Our overall capacity [in Taiwan] will…continue to grow. But we can expand our presence in the US,” she added. This statement suggests that while Taiwan is open to increasing its investment in the US, it is not willing to compromise on its domestic production capacity.
The semiconductor industry is a complex and highly specialized sector, requiring significant investments in research and development, manufacturing, and talent acquisition. Shifting 40% of Taiwan’s chip capacity to the US would require a massive overhaul of the country’s industrial infrastructure, not to mention the significant costs associated with relocating personnel, equipment, and supply chains.
Moreover, Taiwan’s semiconductor industry is deeply integrated into the global supply chain, with many of its companies serving as key suppliers to major tech firms around the world. Disrupting this supply chain could have far-reaching consequences for the global tech industry, including potential shortages and delays in the production of critical components.
The US government’s push for Taiwanese chip firms to relocate to the US is driven by concerns over national security and the need to reduce dependence on foreign suppliers. However, this approach may not be the most effective way to achieve these goals. Instead of relying on tariffs and threats, the US government could consider working with Taiwanese companies to establish partnerships and collaborations that benefit both parties.
For example, the US could offer incentives and support for Taiwanese companies to invest in research and development in the US, or to establish joint ventures with American firms. This approach would allow Taiwanese companies to maintain their domestic production capacity while also expanding their presence in the US.
In conclusion, Taiwan’s Vice Premier Cheng Li-chiun has made it clear that shifting 40% of the country’s semiconductor capacity to the US is “impossible”. While Taiwan is open to expanding its presence in the US, it is not willing to compromise on its domestic production capacity. The US government’s approach to achieving its goals in the semiconductor industry may need to be reevaluated, with a greater emphasis on partnership and collaboration rather than tariffs and threats.
As the global semiconductor industry continues to evolve, it is likely that we will see increased cooperation and collaboration between countries and companies. However, this cooperation must be based on mutual respect and a willingness to work together to achieve common goals. The US and Taiwan must find a way to balance their respective interests and work towards a solution that benefits both parties.
The future of the semiconductor industry is uncertain, but one thing is clear: the US and Taiwan must work together to achieve their goals. By doing so, they can ensure the continued growth and development of this critical industry, and maintain the stability of the global supply chain.
Source: https://www.reuters.com/world/china/taiwan-says-40-shift-chip-capacity-us-is-impossible-2026-02-09/
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