Taiwan Rules Out 40% Chip Capacity Move to US

Taiwan has firmly ruled out any large-scale relocation of its semiconductor industry. In fact, it says shifting 40% of its chip capacity to the United States is “impossible.”

Vice Premier Cheng Li-chiun said Taiwan has clearly conveyed to Washington that its semiconductor ecosystem — built over decades across manufacturing, packaging and supply chains — cannot be moved. She stressed that Taiwan’s capacity will continue to grow. Meanwhile, companies will expand their overseas presence.

Cheng added that international investments, including in the U.S., will be based on the principle that Taiwan remains the core base of operations. She also said there are no plans to relocate Taiwan’s science parks. However, the island is open to sharing its expertise to help the U.S. develop its own semiconductor ecosystem.

Her comments come after U.S. officials argued that chip manufacturing needs to shift away from Taiwan due to security concerns. Their stated goal is to bring 40% of leading-edge semiconductor production to the U.S. Taiwan has rejected similar proposals in the past.

Last month, Taiwan and the U.S. agreed to reduce tariffs on the island’s exports to 15% from 20%. This move comes alongside increased Taiwanese investment in America. Taiwan said its overall semiconductor capacity — including projects under construction and in planning — will far exceed its overseas assets.

TSMC, the world’s largest contract chipmaker, is already investing $165 billion to build manufacturing facilities in Arizona.

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