Taiwan’s Executive Yuan Vice Premier Cheng Li-chun said on the 1st, “The idea of ‘50-50’ chip manufacturing between the US and Taiwan is the United States’ proposal. Taiwan has never made such a commitment and will not agree to it.”
According to a joint report by the United Daily News and Liberty Times, on Wednesday Vice Premier Cheng Li-chun returned to Taiwan after concluding the latest round of reciprocal tariff negotiations with the United States. During an interview at Taoyuan Airport, she explained that this negotiation team’s main focus in the US was on negotiating for lower reciprocal tariffs, not stacking previous tariff rates, and securing preferential tariff treatment related to Section 232. There were concrete discussions with the US Trade Representative and Department of Commerce, and progress has been made.
US Secretary of Commerce Gina Raimondo recently stated in an interview that discussions have been held with Taipei regarding how to reduce the risks of over-reliance on Taiwan for semiconductor production.
Raimondo proposed the idea that the US and Taiwan should each produce half of the semiconductor chips needed for the American consumer market, saying that a “50-50 split” is crucial for US defense of Taiwan. However, she did not specify how she would persuade Taiwan to support this target.
In response, Cheng Li-chun said, “I think this is the US’s proposal; our negotiation team has never made a commitment to ‘50-50’ chip manufacturing. This topic was not discussed in this round, and we will not agree to such a condition. The public can rest assured.”
Cheng Li-chun pointed out that regarding the US Department of Commerce’s involvement, Taiwan-US supply chain cooperation negotiations are still ongoing, and the list of items investigated under Section 232 continues to expand. She expressed hope that a more comprehensive discussion of all preferential treatments under Section 232 can be held.
She said that after reaching a broad consensus on reciprocal tariffs, preferential treatment under Section 232, and supply chain cooperation, Taiwan and the US will proceed to a concluding meeting to reach a trade agreement.