Taiwan Rejects 50-50 Chip Production Deal with U.S.

Taiwan's top negotiator has dismissed a 50-50 semiconductor production deal proposed by the U.S. Taiwan continues to lead in chip manufacturing despite U.S. incentives to produce more domestically. TSMC invests in U.S. factories, while Taiwan seeks better tariff rates and plans agricultural imports from the U.S.

Taiwan's chief tariff negotiator has firmly rejected a U.S. proposal for an equal division of semiconductor production. The rebuff follows discussions led by U.S. Secretary of Commerce Howard Lutnick suggesting a 50-50 production split, a concept that Taiwan insists was never broached in official talks.

Currently, Taiwan, home to leading chip manufacturer TSMC, enjoys a trade surplus with the U.S. and pays a 20% tariff on its exports. Despite TSMC's commitment to invest $165 billion in Arizona chip factories, the majority of its production will stay in Taiwan. The U.S. authorities remain silent on the proposal's status.

As Taiwan engages in substantive tariff negotiations with the U.S., it simultaneously plans significant agricultural purchases, worth $10 billion over four years. Premier Cho Jung-tai underscores the ongoing discussions' progress, highlighting Taiwan's balanced approach to international economic partnerships.