Taiwan rejects U.S. proposal of ’50-50′ chip production
Limited Taiwan semiconductor production company at Hsinchu Science Park.
Annabelle Chih | Getty Images News | Getty Images
He said Taiwan would not accept the proposal of Washington to produce half of the chips currently provided to the United States locally.
Ceng Li-Chiun, speaking to reporters, said the country’s Deputy Prime Minister Wednesday, when he returned from the trade talks in the United States, the proposal for “50-50” division in semiconductor production was not discussed. According to Taiwan’s central news agency.
Cheng said that negotiations focused on reducing the tariff rates of interviews, exemptions from tariff stacking – additional tasks – and reducing taxes on Taiwan exports. Taiwan is currently facing a 20%”mutual” tariff rate.
Washington organized discussions with Taipei about the “50-50” division in the semiconductor production that would interrupt Taiwan’s confidence in Taiwan, in an interview last weekend, the Trade Secretary Howard Lutnick added that 95% of the US demand was met through the chips produced in Taiwan.
“My goal and the purpose of this administration are to take the chip production significantly from it – we need to make our own chips.” He said. “The idea I have [Taiwan] It happened, let’s 50-50. We produce half and produce half. ”
Earlier this year, US President Donald Trump also targeted the island’s dominance in chips and accused him of “stealing” the US chip business.
The US Trade Representative and Taiwan Ministry of Economic Affairs did not immediately respond to CNBC’s request for comments.
According to the Central News Agency report, Lutnick’s proposal was condemned by the politicians of the island’s main opposition party Kuomintang President Eric Chu and Taiwan.
“Nobody can sell Taiwan or TSMC and no one can weaken Taiwan’s silicone shield, Chu said Chu Taiwan semiconductor production companyWorld leader in advanced chip production.
It is believed that Taiwan’s critical position in global chips production of the island country’s defense against direct military actions from China is often referred to as the theory of “Silicone Kalkan”.
In a Newsnation interview, Lutnick underestimated the “Silicone Shield”, arguing that Taiwan would be safer with the production of more balanced chip between Washington and Taipei. Beijing sees the democratically ruled Taiwan Island as its own region and promised to take it back Forced if necessaryTaipei rejects these claims.
Taiwan People’s Party President Huang Kuo-Chang’s offer of Lutnick’s offer “Taiwan’s technology sector to evacuate the foundations” was reported.
