Taipei: Taiwan Vice Premier Cheng Li-chiun declared that Taiwan will not accept the U.S.’s proposal for a “50-50” division in semiconductor production, a concept reportedly introduced by U.S. Commerce Secretary Howard Lutnick.
According to Focus Taiwan, Cheng made the remarks at Taiwan Taoyuan International Airport upon returning from recent trade negotiations with the U.S. He clarified that such an arrangement was “not discussed” during the talks. Lutnick, in an interview released by NewsNation, had indicated that the U.S. emphasized the importance of an equal production split, stating, “The idea that I pitched them [Taiwan] was let’s get to 50-50. We’re producing half, you’re producing half.”
Cheng further explained that the discussions primarily revolved around reducing tariff rates, securing exemptions from tariff stacking, and lowering levies on Taiwanese exports under Section 232 of the Trade Expansion Act. The U.S. initiated a Section 232 investigation in April to potentially impose tariffs on semiconductor and other tech product imports, which is still in progress.
The Executive Yuan, Taiwan’s executive branch, released a statement Wednesday, highlighting that the proposed condition “goes against Taiwan-U.S. supply chain cooperation.” The opposition parties, the Kuomintang (KMT) and the Taiwan People’s Party (TPP), also criticized the proposal. KMT lawmaker Hsu Yu-chen labeled it as exploitation, while KMT Chairman Eric Chu asserted that no one can undermine Taiwan’s crucial semiconductor industry, often referred to as its “silicon shield.”
TPP Chairman Huang Kuo-chang echoed these sentiments, describing the proposal as an attempt to “hollow out the foundations of Taiwan’s technology sector.”
