Taiwan is considering forming a high-tech strategic partnership with the US, which wants increased Taiwanese investment, Vice Premier Cheng Li-chiun (鄭麗君) told a news conference in Taipei yesterday while giving an update on talks with Washington.
Taiwan — home to Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker — runs a large trade surplus with the US. Its exports to the US are subject to a 20 percent tariff, a figure that Taipei is seeking to cut.
Cheng, who is leading the tariff talks with Washington, said she was hopeful that both sides could reach a consensus on expanding investment in the US through a “Taiwan model.”
Photo: George Tsorng, Taipei Times
That would not involve relocating supply chains, but rather extending and expanding US production capacity, said Cheng, who returned this week from the latest round of talks.
The government views the model for investing in the US as “industrial investment planning” coupled with government support measures such as export credit guarantees and joint Taiwan-US development of industrial clusters, she told reporters alongside Minister Without Portfolio Yang Jen-ni (楊珍妮), who leads the Executive Yuan’s Office of Trade Negotiations, and Vice Minister of Economic Affairs Ho Chin-tsang (何晉滄).
“The current negotiation focus is that the United States expects us to expand investments and engage in supply chain cooperation,” Cheng said.
The Taiwan Model would allow corporate owners to choose the industries in which they wish to invest, and the government then invests based on those choices, she said.
The government would establish an investment insurance scheme, providing companies with financial support and encouraging them to invest, she added.
While science parks in Taiwan might not be 100 percent replicable in other countries, the nation is willing to share its experience to help foster and build industry clusters in the US, thereby decreasing investment risks and corporate overheads, she said.
This does not mean we are moving Taiwan’s science parks to the US, she added.
To encourage the formation of industry clusters and science parks, we hope the US would provide land, utilities, services, basic infrastructure, as well as facilitating visa issuances, and expediting legal frameworks and environmental assessment processes, Cheng said, adding that those conditions would accelerate the formation of corporate investment plans, as well as facilitating the creation of local supply chains and industry clusters.
To meet the conditions would require a joint effort by the industrial sector, the financial sector and the government, with success creating a “win” for all parties, Cheng said.
In addition to discussions on supply chain collaboration, Taiwan is also in talks with the US over tariff rates, Cheng said, adding that Taiwan has reiterated its position that the rates would not be cumulative.
The two nations are also discussing preferential tariff rates for semiconductors and related products, as well as other items mentioned under Section 232 of the US Trade Expansion Act of 1962, Cheng said.
Neither the US Department of Commerce nor the Office of the US Trade Representative has responded to requests for comment on the talks.
TSMC, whose business is surging on demand for artificial intelligence applications, is investing US$165 billion to build chip factories in Arizona, although the bulk of its production would remain in Taiwan.
Cheng, who said that TSMC did not take part in the latest talks, reiterated that a proposal floated in US media by US Secretary of Commerce Howard Lutnick for a “50-50 split” in making chips is not something Taiwan would agree to and was not brought up.
The aim of Taiwan’s industry is to “remain rooted in Taiwan and deploy around the world, and then have bilateral strategic cooperation,” she said.
Taiwan has sought three main concessions in the negotiations: to reduce the tariff rate, receive comprehensive preferential treatment covering semiconductors and other items under the act, and receive improved investment opportunities in the US.
The US tariff policy took effect on Aug. 7, setting Taiwan’s provisional tariff rate at 20 percent.
There have been five rounds of talks so far this year, starting with a video conference on April 11 and followed by meetings on May 1, June 25, July 8, late July to early August, and from Thursday last week to Monday.
Additional reporting by CNA
‘NO SECURITY RISK’: The Railway Bureau reassured the public that the technicians’ activities were limited to technical guidance and did not involve sensitive systems The Railway Bureau yesterday said it had invited eight Chinese technicians to assist with an airport MRT construction project. The bureau issued the confirmation after an Internet user said Chinese nationals had entered the construction zone of Taiwan Taoyuan International Airport’s Terminal 3 project. They asked why “individuals from an enemy state” were allowed access to such a major national infrastructure project, which raised serious concerns over Taiwan’s industrial safety, sensitive systems and information security. The bureau’s Northern Region Engineering Branch Office said subcontractor Taiwan Handle Industrial Co (台灣手把工業) of the Taoyuan airport MRT’s “Contract No. CU05 Project A14 Station Civil, MEP &
The National Chungshan Institute of Science and Technology yesterday showcased its locally developed variants of the Vision 60 robotic patrol dog, which it plans to deploy on the nation’s outlying territories in the South China Sea. The variants were produced under the Joint Lab project — created by the institute and domestic companies — and assembled with domestically produced motors, lenses and artificial intelligence (AI) systems alongside licensed tech from the US, Missile and Rocket Systems Research Division deputy director Jen Kuo-kang (任國光) told the media event at a military base in Taipei’s Dazhi (大直) area. Taiwan has built up its strengths
TIT-FOR-TAT: The US allegedly revoked the visa of a Chinese national working at Xinhua News Agency in the US in response to Beijing’s expulsion of Vivian Wang The Presidential Office yesterday condemned China for expelling a New York Times correspondent from Beijing following the newspaper’s interview with President William Lai (賴清德), saying the move highlighted Beijing’s suppression of press freedom and its threat to international news media. Taiwan has noted a series of recent incidents in which Beijing used similar tactics to “threaten and pressure international media outlets and journalists,” Presidential Office spokeswoman Karen Kuo (郭雅慧) said in a statement. “This concerns not only press freedom and freedom of expression, but also the safety of journalists, and Taiwan and relevant partners are paying close attention to the situation,” she
NOT IMMEDIATE: Taiwan has a chance to appeal the proposed 10 percent tariff before it starts, while other countries face a 12.5 percent tariff from the trade office Taiwan is among 60 economies determined by the US to have failed to impose or enforce a ban on the importation of goods produced with forced labor, according to a notice released on Tuesday by the Office of the US Trade Representative (USTR), which proposed imposing an additional 10 percent or more tariff on them. The USTR in a statement said that following an investigation, it had determined under Section 301 of the Trade Act of 1974 that the failure of the 60 economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is
RSS