Taiwan rejects possibility of transferring 40% of the island's semiconductor capacity to U.S. — production on Taiwan expected to increase in lockstep with increases in U.S.-based production

Source: Tom’s Hardware

Taiwan’s government has rejected calls from U.S. officials to shift a large portion of semiconductor manufacturing to America, stating that relocating 40 % of the island’s chip production is not feasible, reports Reuters. The authorities expect companies like TSMC and UMC to keep expanding their production capacity on the island, even though TSMC is now actively expanding overseas and other countries are looking for the onshoring of chipmaking.

Vice Premier Cheng Li‑chiun said in an interview with Taiwan‑based CTS that she had clearly told the U.S. government that Taiwan’s semiconductor ecosystem cannot simply be transferred elsewhere. The semiconductor sector will continue expanding domestically, while overseas investments — including those that TSMC makes in its U.S. production capacity — will proceed only alongside continued growth at home. According to Cheng, Taiwan’s overall semiconductor capacity — including existing fabs as well as future projects — is expected to exceed investments made in the United States or any other country.