Technology10/1/2025Ars Technica

Taiwan rejects Trump’s demand to shift 50% of chip manufacturing into US

Taiwan rejects Trump’s demand to shift 50% of chip manufacturing into US

Taiwan has rejected a demand from the Trump administration to shift 50% of its chip manufacturing capacity to the United States. The Taiwanese government has stated that this claim, made by a senior US official, is not accurate. Taiwan's semiconductor industry, which is the world's largest, has faced increasing pressure from the US to relocate production to the country. However, Taiwan has emphasized the importance of maintaining its current manufacturing capabilities and has not agreed to any such shift. The dispute highlights the ongoing tensions between the US and Taiwan over trade and technology issues. The US has sought to reduce its reliance on foreign-made semiconductors, particularly from Taiwan and China, as part of its efforts to bolster domestic manufacturing and national security. Despite the US pressure, Taiwan has maintained its position, stating that its semiconductor industry is crucial to the global supply chain and that any significant shift in production would be challenging and disruptive.

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