It would be “impossible” to move 40% of Taiwan’s semiconductor capacity to the U.S., the island’s top tariff negotiator said, pushing back against recent comments by American officials who called for a major production shift.
In an interview with Taiwanese television channel CTS that was broadcast late on Sunday, Taiwan Vice Premier Cheng Li-chiun said she had made it clear to Washington that Taiwan’s semiconductor ecosystem, built up over decades, could not be relocated.
“I have made it very clear to the United States that this is impossible,” she said, referring to the 40% goal the U.S. has floated.
That ecosystem will continue to grow in Taiwan, Cheng said, adding that the semiconductor industry would keep investing at home.
If they moved enough to the US we could stop supporting them in case of China taking them. That is the subtext here and it’s not lost on Taiwan. No amount of tarriffs would convince them to give up their flagship industry to their biggest customer and lose their importance.
It’s also an empty tarriff threat. Taiwan has more semiconductors than there are people to buy them. We need the chips, they don’t need to sell them here specificially. I really don’t think the US has any leverage beyond supporting them against China, and the supply chain, which the netherlands and other countries have as much leverage as we do with.