Taiwan is considering forming a high-tech strategic partnership with the US, which wants increased Taiwanese investment, Taipei’s top tariff negotiator said yesterday, giving an update on talks with Washington.
Home to the world's biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC), Taiwan runs a large trade surplus with the US. Its exports to the US are currently subject to a 20 percent tariff, a figure Taipei is seeking to cut.
Vice Premier Cheng Li-chiun (鄭麗君), who is leading the tariff talks with Washington, told reporters in Taipei she was hopeful both sides could reach a consensus on expanding investment in the US through a "Taiwan model."
Photo: Lin I-chang, 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 country as "industrial investment planning" coupled with government support measures such as export credit guarantees and joint Taiwan-US development of industrial clusters, she added.
"The current negotiation focus is that the United States expects us to expand investments and engage in supply chain cooperation," she said.
Neither the US Department of Commerce nor the Office of the US Trade Representative has responded to requests for comment on the talks. The US government went into shutdown yesterday.
TSMC, whose business is surging on strong 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, repeated 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.
"We can clearly say that we understand that the US side's hope is to increase domestic production capability to satisfy US domestic demand," she added.
The aim of Taiwan's industry is to "remain rooted in Taiwan and deploy around the world, and then have bilateral strategic cooperation," Cheng said.
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