• Taiwan categorically rejects the US proposal for a 50-50 semiconductor production split.
• Vice Premier Cheng Li-chiun states that Taiwan's negotiating team never committed to such terms.
• Taiwan aims to maintain its semiconductor dominance amid rising US pressure.
• The island's exports to the US are subject to a significant 20% tariff, causing concerns among manufacturers.
• Taiwan is prioritizing supply-chain cooperation and tariff reductions over production commitments.

Taiwan has firmly rejected a proposal from the United States suggesting a 50-50 split in semiconductor production, asserting that this arrangement was never agreed upon. Vice Premier Cheng Li-chiun clarified that Taiwan's negotiating team "never made any commitment" to such a division, emphasizing that it was a U.S. idea that was not part of their recent discussions in Washington, according to Reuters, India Times, and Anadolu Agency.

The U.S. Secretary of Commerce, Howard Lutnick, had suggested the need for such a division, stating that it was critical for both parties to produce semiconductors in equal measure. However, Cheng reiterated that Taiwan's focus during talks was on securing better tariff rates and supply chain cooperation, rather than agreeing to production splits, according to TRT Global and South China Morning Post.

Taiwan's trepidation stems from concerns that such a commitment could weaken its semiconductor industry, often referred to as its "silicon shield" against geopolitical threats, especially from China. The island currently produces over half of the world's semiconductors, and more than 70% of its exports to the U.S. comprise information and communication technology that includes chips, as reported by South China Morning Post and India Times.

Additionally, Taiwan is looking to mitigate the impact of a 20% tariff imposed by the Trump administration on its exports. In response, Taipei has pledged to increase U.S. investments and other economic interactions while pushing back against production demands. The pushback highlights Taiwan's desire to preserve its technology base amidst increasing pressures from the U.S., according to Reuters and South China Morning Post.