In a televised interview broadcast late Sunday on Taiwanese channel CTS, Vice Premier Cheng Li-chiun said she had clearly communicated to Washington that Taiwan’s semiconductor industry—built over decades—cannot be relocated. The remarks were in response to recent comments from U.S. officials advocating for a significant shift in production.
“I have made it very clear to the United States that this is impossible,” Cheng said, referring to the 40% target floated by the U.S.
Taiwan to Grow Capacity Locally, Expand Abroad
Cheng stressed that Taiwan’s semiconductor ecosystem will continue to expand domestically, while also growing its presence in the United States.
“Our overall capacity (in Taiwan) will only continue to grow,” she said. “But we can expand our presence in the United States.”
“Our international expansion, including increased investment in the United States, is based on the premise that we remain firmly rooted in Taiwan and continue to expand investment at home.”
She also dismissed suggestions that Taiwan’s science parks could be relocated, but said Taiwan is willing to share its expertise in building industrial clusters to help the U.S. develop similar capabilities.
Cheng expressed confidence that Taiwan’s semiconductor capacity—including existing, under-construction, and planned projects across advanced manufacturing, advanced packaging, and the broader supply chain—will far exceed its investment in the U.S. or any other country.
U.S. Pushes for Production Shift
On Tuesday, U.S. Commerce Secretary Howard Lutnick reiterated the U.S. government’s position that semiconductor production must be brought back to American soil.
“You can’t have all semiconductor manufacturing 80 miles from China,” he said. “That’s just illogical … So we need to bring it back.”
Lutnick also reiterated his administration’s target of 40% market share in leading-edge semiconductor manufacturing by the end of its term.
Last month, Lutnick told CNBC that his goal was to relocate 40% of Taiwan’s entire chip supply chain and production to the U.S., warning that tariffs on Taiwanese exports could rise to 100% if the target is not met. In September, he proposed a 50-50 split in chip production between the U.S. and Taiwan—a proposal Taiwan rejected at the time.
Taiwan’s Major Chipmaker Invests in the U.S.
Despite the disagreement, Taiwanese firms are already expanding in the U.S. TSMC, the world’s largest contract chipmaker, is investing $165 billion to build semiconductor plants in Arizona, underlining a growing, if limited, shift in manufacturing footprint.
As the U.S. pushes for greater domestic production, Taiwan remains firm that its advanced semiconductor ecosystem will remain rooted in the island, even as it continues to invest internationally.