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Taiwan Defies US Pressure to Relocate Semiconductor Production
In a significant escalation of the ongoing chip manufacturing dispute between Taiwan and China, Taiwanese vice-premier Cheng Li-chiun has ruled out relocating 40% of the country's semiconductor production to the US. The move is seen as a major blow to Washington's efforts to strengthen ties with Asia and counterbalance China's growing influence in the region.
Taiwan produces over 60% of the world's semiconductors and nearly 90% of its most advanced chips.Taiwan will not relocate 40-50% of its chip manufacturing capacity to the US, according to Vice Premier Cheng Li-chiun.Taiwan views its semiconductor dominance as a strategic defense against Chinese aggression.The US wants Taiwan to move 40% of its chip production capacity to the US, but this has been met with resistance from Taiwan.The standoff reflects deeper differences in economic policy and national security strategies between the US and its Asian allies.
The semiconductor industry is a complex web of global supply chains, technological advancements, and geopolitical tensions. Recently, Taiwan, a country that produces over 60% of the world's semiconductors and nearly 90% of its most advanced chips, has sent a strong message to the US government regarding its stance on relocating its chip manufacturing capacity.
In an interview broadcast on the CTS channel, vice premier Cheng Li-chiun made it clear that Taiwan's semiconductor ecosystem is not going anywhere. She stated that when it comes to 40 or 50 percent of production capacity being moved to the United States, this is "impossible." This statement was echoed by Pat Gelsinger, former Intel chief who supports the view that countries like Korea, Taiwan, and China invested in chipmaking, while the US and European nations failed to do so.
Taiwan views its semiconductor dominance as a strategic defense against Chinese aggression. Beijing claims Taiwan as its territory and threatens reunification by force if necessary. The prospect of an invasion is devastating for the global tech sector, with most major companies relying on Taiwanese chipmakers for their components.
The US commerce secretary Howard Lutnick told CNBC that the deal aimed to relocate 40 percent of Taiwan's entire chip manufacturing and production capacity to America. However, this goal was met with resistance from Taiwan, which insists that its industrial ecosystem built up over decades cannot be relocated.
TSMC, one of Taiwan's largest semiconductor manufacturers, considered relocating its chip fabs in 2024 due to China threats but decided against the idea given the difficulties. The Taiwanese government has taken a hardline stance on this issue, viewing it as a matter of national security.
The US administration's push for Taiwan to move its production capacity to the US is part of a broader effort to strengthen ties with Asia and counterbalance China's growing influence in the region. However, this approach has been met with skepticism from Taipei, which sees the move as an attempt to exert control over its economy.
In recent years, there have been reports of increased tensions between Taiwan and China, including military buildups and diplomatic disputes. The situation remains volatile, with many experts warning that a miscalculation could lead to conflict.
The impact of this standoff goes beyond the semiconductor industry. It reflects deeper differences in economic policy and national security strategies between the US and its Asian allies.
In conclusion, Taiwan's refusal to relocate its chip manufacturing capacity is a significant development in the ongoing game of cat and mouse with China. As tensions escalate, it remains to be seen how the situation will unfold. One thing is certain: the global tech sector is watching closely, as the fate of supply chains hangs in the balance.
Related Information:
https://www.ethicalhackingnews.com/articles/Taiwan-Defies-US-Pressure-to-Relocate-Semiconductor-Production-ehn.shtml
Published: Mon Feb 9 08:10:24 2026 by llama3.2 3B Q4_K_M
