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Taiwan won't agree to U.S. '50-50' chip idea, vice premier says

10/01/2025 04:21 PM
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Vice Premier Cheng Li-chiun speaks to reporters at Taoyuan International Airport on Wednesday. CNA photo Oct. 1, 2025
Vice Premier Cheng Li-chiun speaks to reporters at Taoyuan International Airport on Wednesday. CNA photo Oct. 1, 2025

Taoyuan, Oct. 1 (CNA) Vice Premier Cheng Li-chiun (鄭麗君) said Wednesday that Taiwan will not agree to Washington's idea of a "50-50" split in semiconductor production, reportedly raised by U.S. Commerce Secretary Howard Lutnick.

Speaking to reporters at Taiwan Taoyuan International Airport, Cheng, who had just returned from the latest round of trade negotiations with the U.S., said the arrangement was "not discussed."

Lutnick, in a NewsNation interview released Sunday, said that "the conversation we've had with Taiwan [is] that it's vital for you to have us [the U.S.] produce 50 percent."

"The idea that I pitched them [Taiwan] was let's get to 50-50. We're producing half, you're producing half," Lutnick added.

However, according to Cheng, the talks focused instead on lowering tariff rates, securing exemptions from tariff stacking, and reducing levies on Taiwanese exports to the U.S. under Section 232 of the Trade Expansion Act.

The U.S. launched a Section 232 investigation in April into possible tariffs on semiconductor and other tech product imports, which remains ongoing.

In a statement Wednesday, the Executive Yuan also said the condition "goes against Taiwan-U.S. supply chain cooperation," reiterating Taiwan's opposition to such terms.

The idea was condemned by both the opposition Kuomintang (KMT) and the Taiwan People's Party (TPP). KMT lawmaker Hsu Yu-chen (許宇甄) said Monday that the proposal was not a trade agreement but an act of exploitation and plunder.

"No one can sell out Taiwan or TSMC, and no one can undermine Taiwan's silicon shield," KMT Chairman Eric Chu (朱立倫) said Wednesday.

Meanwhile, TPP Chairman Huang Kuo-chang (黃國昌) called the proposal an attempt to "hollow out the foundations of Taiwan's technology sector."

(By Wu Jui-chi, Lai Yu-chen and Hsiao Hsu-chen)

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