Technology9/29/2025Ars Technica

Taiwan pressured to move 50% of chip production to US or lose protection

Taiwan pressured to move 50% of chip production to US or lose protection

The Trump administration has pressured Taiwan to move at least 50% of its semiconductor production to the United States, threatening to withhold military protection if the demand is not met. This move is seen as an attempt to reduce the reliance on Taiwan's chip industry, which is a crucial part of the global supply chain. The proposal, described as "impossible" by industry experts, would require Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chip manufacturer, to significantly shift its operations to the US. This would disrupt the existing supply chain and have far-reaching implications for the tech industry worldwide. The Biden administration has not yet clarified its stance on this issue, but the pressure on Taiwan to relocate its chip production is likely to continue, driven by the ongoing US-China trade tensions and the strategic importance of semiconductor technology.

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