Taiwan rejects US chip-making demand

TRADE DEFICIT

- YIAN LEE

Two chips on display at the Taiwan Semiconductor Research Institute in Hsinchu, Taiwan. REUTERS

Taiwan has pushed back on a US request to move chip production stateside to cover half of America’s demand, underscoring the tensions complicating trade talks between the two sides.

Vice Premier Cheng Li-chiun said yesterday that the idea of having the US produce 50% of the semiconductors it needs came from Washington, and Taiwan has never made such a commitment.

“This issue was not discussed in this round of negotiation, and we will not agree to such a condition,’ Mr Cheng said.