Taiwan says 40% shift of chip capacity to US is ‘impossible’

Taiwan’s top tariff negotiator described moving 40% of the island’s semiconductor production capacity to the United States as “impossible.” This statement counters recent calls by U.S. officials for a significant relocation of chip manufacturing. Taiwan plays a critical role in the global semiconductor supply chain, and the industry is highly concentrated on the island.

The negotiator did not specify alternatives but emphasized the challenge of such a shift. Taiwan’s semiconductor sector involves complex infrastructure, investments, and expertise that are not easily relocated. In addition, such a move would take considerable time and resources.

U.S. officials have stressed the need to boost domestic chip production for supply chain security. However, Taiwan’s remarks indicate that a rapid or large-scale transfer is unlikely. Therefore, maintaining current production capabilities in Taiwan remains a key factor in the global chip market.

This exchange highlights ongoing tensions between efforts to diversify supply chains and the practical limits of shifting semiconductor manufacturing.