09 February 2026
Taiwan Rejects US Semiconductor Relocation Demand Amid Trade Deal, Maintains Global Supply Chain Stability
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Taiwan's Vice Premier Cheng Li-chiun firmly rejected U.S. demands to relocate 40 percent of the island's semiconductor production stateside, calling it impossible during a CTS television interview aired Sunday, as reported by Focus Taiwan and Reuters. She told American negotiators that Taiwan's decades-old chip ecosystem, including its most advanced R&D and manufacturing, must stay put to maintain global supply chain stability and act as a silicon shield against threats.
This pushback comes amid a fresh U.S.-Taiwan trade deal struck January 15, slashing tariffs on Taiwanese goods from 20 percent to a 15 percent cap on a non-stacking basis, leveling the playing field with Japan, South Korea, and the EU, according to Taiwan's finance ministry and AmCham Taiwan. In exchange, Taiwanese tech giants like TSMC pledged $250 billion in U.S. investments, backed by another $250 billion in government credit guarantees—the so-called Taiwan model of private-led growth with public support.
U.S. Commerce Secretary Howard Lutnick had warned that failure to hit the 40 percent target could spike tariffs back up to 100 percent, per CNBC coverage. Yet Taiwan holds firm: TSMC's $165 billion Arizona megafab expansion, including 900 new acres in Phoenix, supplements but doesn't replace homegrown capacity. Economist Lien Hsien-ming of the Chung-Hua Institution for Economic Research predicts less than 15 percent of TSMC's advanced nodes will shift to the U.S. by the end of Trump's term, with full Arizona ramps delayed until 2027 or later.
The deal awaits signing in coming days and Taiwan's legislative approval. Meanwhile, Taiwan's January exports surged 69.9 percent year-over-year to a record $65.77 billion, fueled by AI demand, with U.S. shipments up 151.8 percent—proof the tariff relief is boosting momentum despite Trump's broader reciprocal tariff regime, as Reuters notes.
On the security front, the U.S. State Department reaffirmed its commitment to Taiwan amid China's pressure to halt arms sales ahead of Trump's planned April Xi Jinping meeting, with a potential $20 billion package including Patriot missiles in the works, per Taiwan News and the Financial Times.
Listeners, tune in next time for more on how these tariffs shape Taiwan's tech edge.
Thank you for tuning in to Taiwan Tariff News and Tracker—subscribe now for weekly updates. This has been a Quiet Please production, for more check out quietplease.ai.
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Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
This content was created in partnership and with the help of Artificial Intelligence AI
This pushback comes amid a fresh U.S.-Taiwan trade deal struck January 15, slashing tariffs on Taiwanese goods from 20 percent to a 15 percent cap on a non-stacking basis, leveling the playing field with Japan, South Korea, and the EU, according to Taiwan's finance ministry and AmCham Taiwan. In exchange, Taiwanese tech giants like TSMC pledged $250 billion in U.S. investments, backed by another $250 billion in government credit guarantees—the so-called Taiwan model of private-led growth with public support.
U.S. Commerce Secretary Howard Lutnick had warned that failure to hit the 40 percent target could spike tariffs back up to 100 percent, per CNBC coverage. Yet Taiwan holds firm: TSMC's $165 billion Arizona megafab expansion, including 900 new acres in Phoenix, supplements but doesn't replace homegrown capacity. Economist Lien Hsien-ming of the Chung-Hua Institution for Economic Research predicts less than 15 percent of TSMC's advanced nodes will shift to the U.S. by the end of Trump's term, with full Arizona ramps delayed until 2027 or later.
The deal awaits signing in coming days and Taiwan's legislative approval. Meanwhile, Taiwan's January exports surged 69.9 percent year-over-year to a record $65.77 billion, fueled by AI demand, with U.S. shipments up 151.8 percent—proof the tariff relief is boosting momentum despite Trump's broader reciprocal tariff regime, as Reuters notes.
On the security front, the U.S. State Department reaffirmed its commitment to Taiwan amid China's pressure to halt arms sales ahead of Trump's planned April Xi Jinping meeting, with a potential $20 billion package including Patriot missiles in the works, per Taiwan News and the Financial Times.
Listeners, tune in next time for more on how these tariffs shape Taiwan's tech edge.
Thank you for tuning in to Taiwan Tariff News and Tracker—subscribe now for weekly updates. This has been a Quiet Please production, for more check out quietplease.ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
This content was created in partnership and with the help of Artificial Intelligence AI