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US pushing for more advanced chip production at home

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Taiwan underscores commitment to bolstering industry

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Taiwan, US reached tariff deal last month

TAIPEI, Feb 9 (Reuters) - It would be "impossible" to

move 40% of Taiwan's semiconductor capacity to the U.S., the

island's top tariff negotiator said, pushing back against recent

comments by American officials who called for a major ‌production

shift.

In an interview with Taiwanese television channel CTS that

was broadcast late on Sunday, Taiwan Vice Premier Cheng Li-chiun

said she had ​made it clear to Washington that Taiwan's

semiconductor ecosystem, built up over decades, could not be

relocated.

"I ‍have made it very clear to the United States that this ⁠is

impossible," she said, referring ⁠to the 40% goal the U.S. has

floated.

That ecosystem will continue to grow in Taiwan, Cheng said,

adding that the semiconductor industry ‌would keep investing at

home.

"Our overall capacity (in Taiwan) will ​only continue to

grow," she said. "But we can expand our presence in the United

States."

"Our international expansion, including increased investment

in the United States, is based on the ⁠premise that we remain

firmly rooted in Taiwan ‍and continue ​to expand investment at

home."

On Tuesday, U.S. Commerce Secretary Howard Lutnick said the

government needed to bring semiconductors to the U.S.

"You can't have all semiconductor manufacturing 80 miles

from China," he ‍said. "That's just illogical ... So we need to

bring it back."

"When we leave office my goal, for this administration, is

40% market share in leading-edge semiconductor manufacturing."

Taiwan and the U.S. reached a deal last month to lower

tariffs on the island's exports to 15% from 20% and for Taiwan

to increase its investment in the country.

Cheng said that there would be no relocation of Taiwan's

science ​parks, ‍but Taiwan was willing to share its experience in

building an industry cluster and help the U.S. develop a similar

environment.

She also said she was confident that Taiwan's semiconductor

capacity - ​including existing, under construction and planned

projects across advanced manufacturing, advanced packaging and

the broader supply chain - would far exceed its investment in

the U.S. or any other country.

In an interview on CNBC last month, Lutnick said his goal

was to bring 40% of Taiwan's entire chip supply chain and

production to the U.S. He said that if this does not happen,

tariffs on Taiwan would likely rise to 100%.

In September, Lutnick told U.S. ​television network

NewsNation that Washington's pitch to Taiwan would be a 50-50

split in making chips, the vast majority of which are now made

on the island.

Taiwan rejected that idea at the time.

TSMC, the world's largest contract chipmaker, is

investing $165 billion to ‍build factories in the U.S. state of

Arizona.