Taiwan gets chippy about US request it shifts manufacturing
- Reference: 1759328664
- News link: https://www.theregister.co.uk/2025/10/01/taiwan_says_it_wont_help/
- Source link:
The US has been pressing Taiwan to reduce American dependence on chips manufactured on the island — which accounts for over [1]60 percent of global semiconductor production and roughly 90 percent of the world's most advanced chips — as part of ongoing trade talks.
"Our goal is to get to 40 percent market share, and maybe 50 percent market share of producing the chips and the wafers, you know, the semiconductors we need for American consumption. That's our objective and I think it will shock everybody how successful we are," US Commerce Secretary Howard Lutnick said in an [2]interview earlier this week with News Nation.
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But Taiwan's Vice Premier Cheng Li-chiun, contradicted that vision upon returning from Washington negotiations. Taiwan has "never made any commitment to a 50-50 split on manufacturing chips, and would not agree to such terms," she said, according to [4]The Taipei Times .
Washington already imposed a 20 percent tariff on all goods imported from Taiwan, which came into effect in August, and the Trump administration is probably banking on the Taipei government wanting to see that reduced.
[5]
The President continues to float the possibility of [6]100 percent tariffs on imported semiconductors , as part of his push to bring chip production to American soil.
[7]
[8]
The latest proposal would reportedly require tech companies to [9]manufacture one chip domestically for every chip imported - or face the punitive 100 percent tariff.
[10]China accuses Taiwan of running five feeble APT gangs, with US help
[11]Intel and Microsoft staff allegedly lured to work for fake Chinese company in Taiwan
[12]Taiwan thumbs its nose at Beijing by blocking chip exports to SMIC and Huawei
[13]Nvidia sets up shop in Taiwan with AI supers and a factory full of ambition
Washington's urgency stems from Taiwan's geographic position, about 80 miles away from mainland China, and the fact that much of America's critical chip supply originates there.
"The Chinese have said they are going to take Taiwan, so this is an issue," Lutnick said in his interview, "So my objective and this administration's objective is to get chip manufacturing significantly on-shored."
Lutnick even suggested the US military support for Taiwan could become a bargaining chip.
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"Donald Trump would say it's not healthy for you, it's not healthy for us, because we protect you, and for us to protect you, come on, you need to help us achieve reasonable self-sufficiency," Lutnick said.
Taiwan's flagship chip biz TSMC has already said it expects to [15]invest up to $165 billion in the US over the next several years, building semiconductor fabrication plants at a site in Arizona.
However the US goal of onshoring is likely to be extremely costly. To get to 40 percent of the demand being made domestically would require investment of "north of $500 billion," Lutnick conceded. No wonder the Trump administration would like some help. ®
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[1] https://www.z2data.com/insights/where-worlds-most-important-semiconductors-being-manufactured
[2] https://www.youtube.com/watch?v=dPbY-YQAIOA
[3] https://account.theregister.com/register/
[4] https://www.taipeitimes.com/News/taiwan/archives/2025/10/01/2003844742
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aN1QESNKYR5D7LvIqRKMHQAAA8Y&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[6] https://www.theregister.com/2025/08/07/us_semiconductor_tariffs_100_percent/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aN1QESNKYR5D7LvIqRKMHQAAA8Y&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aN1QESNKYR5D7LvIqRKMHQAAA8Y&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2025/09/28/trump_1_1_chip_rule_too_late/
[10] https://www.theregister.com/2025/06/05/china_taiwan_us_apt_report/
[11] https://www.theregister.com/2025/03/31/china_disguised_tech_companies_taiwan/
[12] https://www.theregister.com/2025/06/17/taiwans_crack_down_on_exports/
[13] https://www.theregister.com/2025/05/19/taiwan_nvidia_ai_factory/
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aN1QESNKYR5D7LvIqRKMHQAAA8Y&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2025/08/06/trump_tsmc_300b/
[16] https://whitepapers.theregister.com/
Re: Please shut down your companies
Or in this case, "We won't stop the Cheyna from bombing you."
I've never heard something so ridiculous. America protects Taiwan because of the chips. If chips move to USA, there's no need for USA to protect Taiwan. It's probably easier for Taiwan to let USA impose the 100% and let Americans suffer the cost impact. I mean, there's a reasonable tightness on chip supply that others would come in to mop up.
Let's face it. Trumps promises aren't worth the social media paper they're not printed on.
Ok, put 100% tariffs on US-imported chips
That won't hurt Taiwan - It'll certainly hurt the US.
Withdraw military support - If China takes the opportunity to do a Netanyahu/Putin and invade, that'll hurt some in Taiwan, it'll certainly hurt the US.
Hard to see the upside, unless Trump is deliberately out to further damage US interests...
WWPW
What would Putin want?
Following the Deep Thoughts
So work with me here, we want to keep the chip production out of the hands of the Chinese so as a bargaining chip we're going to withdraw our military support for Taiwan?
Also, we're going to require this immediately? We expect a fab to be ordered from Amazon and set up by November, or they should just stop selling so many chips in America? How do they avoid this tax? What's the behavior being sought here? (See also: Coffee, Brazil)
More Tump Logic
Manufacture your chips in the US or we will let China invade you
Once invaded China will stop Tawain selling chips to the US, so 100% of the chips will be made in the US
Now that is a WIN!!
The cop mentality has reached DC.
"We need you to give up your protection so we can control everything but also don't expect us to actually help you if you do."
The Art of the Deal
The master Deal Maker give a Master Class in Deal Making.
This Master Deal Making illustrates how this Master of the Deal managed to bankrupt several of his own casinos. You really must be a Master Deal Maker to succeed to bankrupt your own casino.
Never bow down to terrorists
I'll raise a glass to Taiwan, all other countries and their leaders, who reject the terroristic threats coming from Trump and America.
It's not easy, it will have a cost, it may be a heavy one, but it's the right thing to do.
I just wish the UK had a backbone.
If the US government is so determined to expand US chip manufacturing then they can easily afford it by simply cancelling the tax cuts for the ultra-wealthy.
Its just a question of priorities...
The logic of the mob:
"Nice chip making facility you have there. It would be a shame if we had to withdraw our 'protection' and just stood by while China trashed it."
If the US doesn't have the manufacturing capability to make its own chips then the US could put 200%, 500%, or even 1000% tariff on Taiwan made ones and US companies wanting to make anything with a modern chip would have to pay it, as there is no where else to get them from.
Of course that wouldn't last very long as no one would be willing to pay the huge prices increases that would put on any American made tech and so either US companies would go bankrupt, Trump would do another TACO, or there would be a huge black market for cheaper devices made outside the US smuggled into the US to avoid any tariffs. None of these will suddenly make multi million dollar chip fabs appear in the US overnight.
Please shut down your companies
to make America great again. It's gonna be beautiful. Sweet.
American negotiations: do as we say or we bomb you.