Taiwan Says 40% Shift of Chip Capacity to US Is 'Impossible'
Taiwan's top tariff negotiator pushes back against proposals to move 40% of semiconductor capacity to the US, highlighting the complexities of global chip supply chain restructuring.
Taiwan's top trade negotiator has firmly rejected proposals to relocate 40% of the island's semiconductor manufacturing capacity to the United States, calling such a move "impossible." The statement highlights the enormous challenges facing efforts to restructure the global chip supply chain.
Taiwan is home to TSMC, the world's largest contract chipmaker, which produces the vast majority of the world's most advanced semiconductors. While TSMC has begun building fabrication plants in Arizona, the scale of operations in Taiwan dwarfs these overseas investments.
The debate underscores the tension between national security concerns driving chip reshoring efforts and the practical realities of semiconductor manufacturing, which requires massive capital investment, specialized talent, and complex supply chain ecosystems that have taken decades to develop.