Key Takeaways
- Taiwan rejected a proposal to split semiconductor production with the US, citing defense concerns.
- Vice-Premier Cheng Li-chun emphasized that Taiwan has never agreed to a “50-50” division.
- The statement came after US Commerce Secretary Howard Lutnick proposed the idea during trade talks.
Taiwan’s Stance on Semiconductor Production
Taiwan has firmly rejected a proposal from the United States to divide semiconductor production on a “50-50” basis. Vice-Premier Cheng Li-chun articulated the concerns surrounding such a division, stating that it could jeopardize the island’s defense capabilities against potential aggression from mainland China. Cheng, who has led Taiwanese negotiations through five rounds of trade talks with the US, specified that Taiwan has not made any prior commitments to such a production arrangement and will not consider it in the future.
The suggestion emerged from US Commerce Secretary Howard Lutnick during discussions aimed at bolstering cooperation in semiconductor capabilities between the two nations. This issue is particularly sensitive, as Taiwan is a crucial player in the global semiconductor supply chain, and any shift in production strategies could have far-reaching implications for both the domestic economy and international relations.
Taiwan’s semiconductor industry is vital not only for the island’s economy but also for global technology sectors, including automotive, consumer electronics, and telecommunications. With increasing pressure from China, Taipei is wary of strategies that could compromise its position or its sovereignty. By rejecting the “50-50” division offer, Taiwan aims to protect its strategic assets while maintaining its role as a leading semiconductor manufacturer.
The ongoing trade talks illustrate the complexities of US-Taiwan relations and the broader geopolitical landscape. Taiwan continues to navigate challenges involving national security and economic partnerships carefully, prioritizing its independence amid growing tensions with China.
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