Taipei: Opposition Kuomintang (KMT) lawmakers in Taiwan have strongly condemned a proposal from Washington suggesting an equal division of semiconductor production between Taiwan and the United States.
According to Focus Taiwan, the U.S. Commerce Secretary Howard Lutnick, in a recent interview, revealed that the Trump administration is advocating for Taiwan to adopt a “50-50” manufacturing arrangement. This proposal implies that half of the chips used within the United States would be produced domestically.
KMT lawmaker Hsu Yu-chen expressed that the proposal is not a fair trade agreement but rather an act of exploitation and plunder of Taiwan’s resources. Hsu highlighted the strategic importance of Taiwan’s semiconductor industry, often referred to as a “silicon shield,” which provides a significant reason for the international community to maintain peace in the Taiwan Strait.
Concerns were raised by Hsu regarding the potential weakening of Taiwan’s security if Taiwan Semiconductor Manufacturing Company (TSMC) is compelled to divide its advanced production capabilities. She stressed that such a move could diminish Taiwan’s security bargaining power.
The report noted that TSMC has already pledged to invest US$165 billion in the United States, including the establishment of six advanced wafer foundries, with the first two projected to produce 600,000 wafers annually. However, Lutnick did not specify how many wafers would meet 50 percent of U.S. demand.
Hsu criticized Lutnick’s announcement of a possible major agreement, suggesting that negotiations have occurred without public disclosure by Taiwan’s government. She accused the government of secretly compromising “Taiwan’s Silicon shield” and betraying the people’s trust by not revealing the terms of the agreement.
KMT lawmaker Huang Chien-hao also commented on the situation, stating that the U.S. objective to diversify risk is evident. He argued that Washington should view short-term trade deficits as investments and avoid imposing punitive tariffs on other Taiwanese industries. Huang emphasized that Taiwan’s government should concentrate on mitigating front-line risks rather than engaging in geopolitical strategies.
In his interview, Lutnick asserted the necessity of a robust U.S. chip supply to protect Taiwan, challenging the notion that Taiwan’s concentrated chip production alone constitutes a silicon shield. He maintained that involving Taiwan in the 50-50 plan is integral to the administration’s strategy and crucial for both nations.
