Taipei Dismisses Idea of Shifting 40% of Chip Capacity to US as ‘Impossible’
Taipei has firmly rejected the idea of relocating 40 percent of Taiwan’s semiconductor manufacturing capacity to the United States, calling the proposal “impossible.” Taiwan’s Deputy Premier and chief trade negotiator Cheng Li-chun said the island’s semiconductor ecosystem, built up over decades, cannot realistically be moved elsewhere, Reuters reports.
In an interview with Taiwan’s CTS television channel on Sunday night, Cheng said she had made it clear to the United States that there are no plans to relocate Taiwan’s science parks or industrial clusters. According to her, semiconductor capacity will continue to expand within Taiwan, although investment in the United States may increase as part of international expansion.
Recently, US Commerce Secretary Howard Lutnick said it was not reasonable for the United States to rely on such a large volume of chip production close to China, and mentioned a target of securing 40 percent of the market. However, Cheng stressed that Taiwan’s overall capacity—combining advanced manufacturing, packaging, and supply chains—would remain far greater than investments made in the United States or any other country.
It is noteworthy that TSMC, the world’s largest contract chipmaker, is investing heavily in building factories in Arizona. Nevertheless, Taiwan believes the core foundation of its semiconductor industry will remain firmly rooted in the island nation.
DBTech/BMT/OR
