Taiwan-US Relations

Lutnick: Taiwan To Bring 40% of Semiconductor Production to US

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By Patrick Chen/Ai Chi

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US Commerce Secretary Howard Lutnick says Taiwan plans to invest another US$20–30 billion in the US and has agreed to move 40% of its chip production there, according to an interview with CNBC on Wednesday. The remarks come as Washington prepares new semiconductor tariffs targeting companies that do not manufacture in the US. Taiwan's economy minister also announced an additional US$20 billion investment in the US by Taiwanese companies during the Semicon trade show in Taipei. Questions remain over Taiwan’s tariff treatment and the future of its US trade deal and MOU signed earlier this year.

US Set for New Semiconductor Tariffs as Taiwan Plans Major US Investment

REPORTER:  
US Commerce Secretary Howard Lutnick says Taiwan is set to invest another $20–30 billion in the US and has agreed to manufacture 40 percent of its chips there. That's what he told CNBC on Wednesday.

REPORTER:  
The comments come as the US government prepares a new round of semiconductor tariffs targeting companies that don’t manufacture in America.

Howard Lutnick (US COMMERCE SECRETARY):  
Taiwan will bring 40% of their chip production to America. They are gonna be announcing next week their next round of another 20, 30 billion US dollar with investment in America. So I think what we are going to see is targeted, thoughtful tariff policy that basically says if you build here you don't pay, but if you don't build here, expect to pay to enter the greatest market in the world.

REPORTER:  
Before Lutnick's remarks, Taiwan's economy minister Kung Ming-hsin announced at Semicon on Wednesday a new round of $20 billion investment in the US by Taiwanese companies.

He later told reporters on Thursday the new investment is included in the trade deal signed with the US earlier this year, mainly driven by strong demand and the need to expand capacity.

Kung Ming-hsin (ECONOMY MINISTER):  
Increasing production is essential to meet the demand from AI and semiconductor related orders. For Taiwanese manufacturers, while Taiwan remains the main production base, the large scale of the capacity requirements means the US will likely also see a simultaneous increase in production capacity.

REPORTER:  
TaiwanPlus reached out to trade officials in Taipei for comment on Lutnick's claim that Taiwan has agreed to bring 40% of its chip production to the US. But there’s been no response as of airtime.

So even as the AI boom continues to drive momentum, questions remain over Taiwan’s status under the new tariff framework and the future of a trade deal and MOU signed with the US earlier this year.

Patrick Chen and Ai Chi in Taipei for TaiwanPlus