Taiwan, through TSMC, is currently the world's leading high-tech chip manufacturing hub. Because of its location and strategic needs, Taiwan is caught in the middle of a trade war between China and the US. This week, US Commerce Secretary Howard Lutnick was quoted as saying that Taiwan must move 50% of its chip production to the US if it wants to continue to receive protection from the country.
This morning, Taiwan's Deputy Premier Cheng Li-chiun said that the request to move 50% of chip production was not discussed with US representatives during previous trade talks. He also stressed that Taiwan would not agree to this company if asked by the US.
Although Taiwan is an American ally in Asia, it is still subject to a 20% tariff by the Trump administration. Chip and semiconductor exports have been hit by the tariffs, and discussions to reduce them are ongoing. TSMC has already invested billions of dollars in building foundries in the US, but this latest request is seen as impossible due to the constraints of skilled labor and the supply chain compared to Taiwan.