US-Taiwan Relations
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U.S. Commerce Chief: Taiwan Should Produce Only Half of America’s Chips
The U.S. is in talks with Taiwan to shift towards a “50-50” split in semiconductor production, aiming to mitigate reliance on Taiwan’s dominance (over 90%) in the global market and bolster domestic chip manufacturing. Citing national security and supply chain resilience, the U.S. seeks to produce roughly half its semiconductor needs domestically, requiring substantial investment (>$500B). While Taiwan’s TSMC, a key player, invests in the US, the move challenges the “Silicon Shield” theory and reflects concerns about geopolitical tensions and potential vulnerabilities.
