US Secretary of Commerce Howard Lutnick’s call for a “50-50” split in semiconductor production could shift Taiwan's “silicon shield” toward a shared Taiwan-US resilience, a semiconductor industry expert said yesterday.
Lutnick on Sunday told NewsNation that he is pushing Taiwan to adopt a “50-50” plan, in which Taiwan and the US each produce 50 percent of the chips used by the US market.
The concept of the “silicon shield” arose because Taiwan has long held more than 90 percent of global advanced chip capacity, which could help deter a Chinese invasion, Taiwan Institute of Economic Research researcher Arisa Liu (劉佩真) said.
Photo: I-Hwa Cheng, AFP
However, the US has said that sufficient domestic chip production is needed to safeguard Taiwan, warning that if Taiwan’s output were disrupted by a conflict, Washington would lack the chips essential for military and economic operations, Liu said.
This position indicates that the US is effectively redefining the “silicon shield” from being “Taiwan only” to a shared Taiwan-US resilience, she said.
The US sees achieving a certain level of domestic chip self-sufficiency, or at least a “50-50” shared production arrangement, as essential to shouldering its protective responsibilities without concern, Liu said.
Washington could pressure Taiwan Semiconductor Manufacturing Co (TSMC) to speed up its construction of US fabs and expand investment in the US, she said, adding that other supply chain companies could face similar pressures.
TSMC is investing US$65 billion to build three advanced wafer fabs in Arizona, the first of which began commercial production late last year.
In March, TSMC pledged to invest an additional US$100 billion in Arizona over the next few years to build three more fabs, two chip packaging plants and one research and development (R&D) center.
For Taiwan, the main concern should be safeguarding its technological edge and intellectual property while balancing domestic R&D needs with the demand for talent at overseas fabs, Liu said.
Since being elected, US President Donald Trump has pushed to get more semiconductor manufacturing in the US, threatening huge tariffs on chip-importing companies that do not manufacture all of the chips they use in the US.
Separately, the Ministry of Economic Affairs yesterday said that Taiwan’s trade talks with the US are being coordinated by the Executive Yuan and are ongoing, without providing any details.
Asked about Lutnick’s remarks, the ministry said that it cannot comment on the US' position, but the matter would be handled cautiously.
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