tech
February 10, 2026
'Impossible': Taiwan Pushes Back Against Washington's 40% Chip Supply Relocation Goal
Taiwan has told Washington that its proposal to move 40% of Taiwan's semiconductor supply chain is 'impossible,' according to Vice Premier Cheng Li-chiun.
TL;DR
- Taiwan's Vice Premier Cheng Li-chiun described the U.S. goal of relocating 40% of the island's semiconductor production to the U.S. as "impossible."
- The statement pushes back against onshoring targets previously outlined by U.S. Commerce Secretary Howard Lutnick.
- Cheng emphasized that Taiwan's semiconductor ecosystem, developed over decades, cannot be simply relocated.
- Taiwan has committed significant investments in the U.S. tech sector as part of a trade agreement, but this is predicated on the industry remaining rooted in Taiwan.
- Semiconductor analysts support Cheng's view, citing difficulties in relocating such an advanced supply chain, U.S. labor shortages, and elevated costs.
- The "Silicon Shield" theory, suggesting Taiwan's chip importance deters Chinese aggression, may also discourage supply chain shifts.
- TSMC, a major chipmaker, has already committed billions to U.S. manufacturing and benefits from the U.S. CHIPS and Science Act.
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