Taiwan will not agree to a 50-50 chip production deal with the US, and frankly, it’s not surprising. The core of the issue seems to stem from a suspicion, a wariness, that the US might be attempting a form of economic extortion. Why would Taiwan, which holds such a critical position in the global chip supply chain, willingly give up a significant portion of that power?
It feels like the US is attempting to leverage its perceived role as Taiwan’s protector, using it as a means to extract concessions. The underlying fear is that the US, once it secures a piece of the pie, could shift its stance, potentially leaving Taiwan vulnerable.… Continue reading
The US Commerce Secretary recently revealed the Trump administration is pressuring Taiwan to relocate 50% of its chip production to the US, citing national security concerns due to China’s threats. The Secretary emphasized that the US’s reliance on Taiwan for nearly all critical chips leaves it vulnerable to economic and defense challenges. While acknowledging the immense difficulty of this endeavor, with experts suggesting it could take decades, the administration’s aim is to significantly boost US chip production to achieve greater supply chain independence. Taiwan must be convinced to abandon its dominance as a global chip supplier for this to work.
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Despite President Trump’s aim to revitalize US chip manufacturing through tariffs and incentivized domestic production, the US faces significant hurdles in competing with Asia’s established, highly integrated ecosystem. While companies like TSMC have invested in US facilities, these plants are currently behind Taiwan’s cutting-edge technology in terms of scale and sophistication. Furthermore, challenges such as skilled labor shortages and high construction costs hinder US production capabilities. Ultimately, Trump’s protectionist approach contrasts sharply with the collaborative global model that fueled Asia’s chip industry dominance.
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Matt Underwood 
John Q. Hosedrinker