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Business · 10 February 2026

Taiwan rejects moving 40 percent chip capacity to US

Taiwan rejects moving 40 percent chip capacity to US

Photo by Andrey Matveev on Pexels

Taiwan Vice Premier Cheng Li-chiun flatly rejected US Commerce Secretary Howard Lutnick's demand to relocate 40 percent of the island's semiconductor supply chain to America. Cheng declared the transfer "impossible" during a CTS interview, emphasizing that Taiwan's domestic ecosystem remains immovable. While TSMC continues US expansion, officials confirmed domestic capacity will exceed overseas investments. Taiwan currently dominates the sector, controlling over 60 percent of global manufacturing and 90 percent of advanced chip production.

Reported by Reuters · How we write briefs

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