2025-10-01T01:08:31Z

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Imagine this: Taiwan, the heart of the global semiconductor industry, is saying a firm ‘no’ to a groundbreaking deal with the United States that could reshape the tech landscape. That's right—Taiwan's top tariff negotiator recently made headlines by rejecting a US proposal that would have split semiconductor production right down the middle.

On October 1, after returning from crucial trade talks in Washington, Taiwan’s Vice-Premier Cheng Li-chiun clarified that no agreement had been made regarding a 50-50 division of semiconductor production. This shocking revelation follows US Secretary of Commerce Howard Lutnick's claims that such a split was on the negotiating table. Cheng firmly stated to reporters that her team had not even entertained the notion during discussions, emphasizing, “Our negotiating team has never made any commitment to a 50-50 split on chips. Rest assured, we did not discuss this issue during this round of talks, nor would we agree to such conditions.”

The stakes are high, especially considering Taiwan is home to Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker. The island currently enjoys a significant trade surplus with the US, although its exports are subject to a hefty 20% tariff. Meanwhile, TSMC is pouring a staggering $165 billion into new factories in Arizona, all while maintaining its primary production operations in Taiwan. This reflects the growing demand for semiconductors, particularly in the booming field of artificial intelligence.

In September, Taiwan’s government expressed hopes for a more favorable tariff rate with the US after achieving “certain progress” during their talks. Premier Cho Jung-tai mentioned that multiple discussions have been taking place, indicating that negotiations are indeed complex and ongoing. Additionally, Taiwan's presidential office recently highlighted a significant agricultural deal, where President Lai Ching-te revealed plans for a Taiwanese agricultural delegation to purchase $10 billion worth of US goods over the next four years, including staples like soybeans and corn.

As the landscape of global trade continues to shift, Taiwan’s firm stance might signal a cautionary tale of national interests battling international pressures. One thing is for sure: the semiconductor saga is far from over.