Bad news Donald Trump as Taiwan turns down 50-50 deal with US on…., to impact…

Taiwan is planning to reject a US proposal to split semiconductor production 50-50 between the two countries.

Oct 2, 2025 - 02:30
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Bad news Donald Trump as Taiwan turns down 50-50 deal with US on…., to impact…

Another Blow To Trump: What comes as a major setback for United States President Doland Trump is that Asian country Taiwan is in a mood to reject a deal with the US that would require half of all semiconductor production to take place in the country. As per a report by Reuters, citing a conversation between US Secretary of Commerce Howard Lutnick and American television network News Nation, Washington tried to pitch Taipei a 50-50 split in chip manufacturing, with most chips currently produced on the island.

How Taiwan Reacted On US’s 50-50 Deal?

Taiwan’s Vice Premier Cheng Li-chiun, upon returning form US, stated that he had no discussion regarding the 50-50 proposal suggested by the US during the negotiations. Notably, Cheng is leading the delegation which is indulge in the tariff talks with Washington.

“Our negotiating team has never made any commitment to a 50-50 split on chips. Rest assured, we did not discuss this issue during this round of talks, nor would we agree to such conditions,” Reuters quoted Taiwan Vice Premier Cheng Li-chiun.

HIGHLIGHTS

  • Taiwan rejects US 50-50 semiconductor deal.
  • Vice Premier says no talks or commitment made with US.
  • TSMC keeps bulk chip production in Taiwan.
  • Taiwan seeks a favourable tariff rate after talks with Washington.

What Could Be The Reasons Behind Taiwan’s Rejection To The Proposal?

It is worth noting that the Asian country is home to the world’s biggest contract chipmaker. Taiwan Semiconductor Manufacturing Co (TSMC) is the company that runs a large trade surplus with America. Its exports to US are currently subject to a 20 percent tariff.

TSMC’s business is witnessing a surge because of the rising demand for artificial intelligence applications. The company has decided to invest USD165 billion to build chip factories in Arizona. However, bulk production of semiconductor chips will remain in Taiwan.

Taiwan Hopes For A Favourable Tariff Rate

As per the report, citing Taiwan’s government, in September Taiwan hoped for a more favourable tariff rate after fruitful talks. On Tuesday, speaking in parliament, Premier Cho Jung-tai informed that Cheng had had several talks with Washington on tariff issues.

Cheng, speaking at the airport, said that “detailed” discussions had taken place which yielded “certain progress,” Reuters added.

Taiwan’s presidential office announced on Tuesday that President Lai Ching-te held a meeting with Luke J Lindberg, who serves as the Under Secretary for Trade and Foreign Agricultural Affairs at the US Department of Agriculture.

(with ANI inputs)

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