Overview
- Vice Premier Cheng Li-chiun said it is impossible to relocate 40% of Taiwan’s semiconductor capacity to the United States, citing an ecosystem built over decades that will keep expanding on the island.
- January’s trade deal cut most U.S. tariffs on Taiwanese goods to 15% and paired higher chip export quotas and select waivers with pledges of $250 billion in company investments and $250 billion in credit to build capacity in the U.S.
- U.S. Commerce Secretary Howard Lutnick has set a goal of securing 40% market share in leading-edge manufacturing and warned Taiwan-based firms that do not build in America could face tariffs of up to 100%.
- Taiwan says its science parks will not be relocated and its most advanced technologies will remain at home, backed by the N-2 rule that keeps overseas fabs at least two generations behind domestic lines.
- Analysts view large-scale relocation as unfeasible due to Taiwan’s integrated supply chain, U.S. labor shortages and higher costs, and officials say the full tariff agreement text will be signed soon before going to Taiwan’s opposition-controlled Legislature.