Taiwan should only produce half of America’s chips, says U.S. Commerce Secretary Howard Lutnick

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Taiwan should only produce half of America’s chips, says U.S. Commerce Secretary Howard Lutnick
Donald TrumpDonald J. TrumpTaiwan Semiconductor Manufacturing Co Ltd
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The Trump administration is pushing Taipei to shift investment and chip production to the U.S. so that half of U.S. chip demand is manufactured locally.

Washington has held discussions with Taipei about a "50-50" split in the production of chips for the U.S. market, Secretary of Commerce Howard Lutnick said in an interview.Lutnick' said he aims to reach about 40% domestic semiconductor production by the end of U.

S. President Donald Trump's current term, which would take northwards of $500 billion in local investment.The Trump administration is pushing Taipei to shift investment and chip production to the U.S. so that half of American demand is manufactured locally, in a move that could have implications for Taiwan's national defense. Washington has held discussions with Taipei about the "50-50" split in semiconductor production, which would significantly reduce American dependence on Taiwan, U.S. Secretary of Commerce Howard Lutnick told News Nation in an, which, according to Lutnick, is cause for concern due to the island nation's distance from the U.S. and proximity to China. "My objective, and this administration's objective, is to get chip manufacturing significantly onshored — we need to make our own chips," Lutnick said. "The idea that I pitched was, let's get to 50-50. We're producing half, and you're producing half.", the world's largest and most advanced contract chipmaker, which handles production for American tech heavyweights like Nvidia and Apple. Taiwan's critical position in global chips production is believed to have assured the island nation's defense against direct military action from China, often referred to as the "Silicon Shield" theory. However, in his News Nation interview, Lutnick downplayed the "Silicon Shield," and argued that Taiwan would be safer with more balanced chip production between the U.S. and Taiwan. "My argument to them was, well, if you have 95% , how am I going to get it to protect you? You're going to put it on a plane? You're going to put it on a boat?" Lutnick said. Under the 50-50 plan, the U.S. would still be "fundamentally reliant" on Taiwan, but would have the capacity to "do what we need to do, if we need to do it," he added.This year, the Chinese military has held a number of large-scale exercises off the coast of Taiwan as it tests its military capabilities. During one of China's military drills in April, WashingtonThe U.S. was once a leader in the global semiconductor market, but has lost market share due to industry shifts and the emergence of Asian juggernauts like TSMC andTSMC has been building manufacturing facilities in the U.S. since 2020 and has continued to ramp up its investments in the country. It

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