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

Taiwan's government has declined the U.S.'s proposal to move 40% of the island's semiconductor manufacturing to America, citing feasibility issues. Instead, Taiwan plans to continue expanding its chip production capacity domestically, with companies like TSMC and UMC expected to increase production on the island. Despite TSMC's overseas expansions, Taiwan emphasizes the importance of maintaining its semiconductor ecosystem locally. U.S. Commerce Secretary Howard Lutnick's goal to boost the U.S.'s share of leading-edge semiconductor manufacturing to 40% in three years faces challenges, including the time required to build and ramp up fabs. Taiwan remains firm on keeping its semiconductor manufacturing within its science parks, while allowing TSMC to expand abroad while keeping advanced technologies in Taiwan.