Taiwan Rules Out Moving Chips Abroad as Taiwan Semiconductor Industry Thrives

Taiwan says moving 40% of chip capacity to the US is impossible, reaffirming the Taiwan semiconductor industry will remain the global tech supply backbone

Taiwan has told the United States that it is “impossible” to move 40% of its semiconductor capacity abroad, reaffirming that its chip ecosystem will remain centered on the island despite ongoing investment plans in America.

Vice Premier Confirms Domestic Focus

Taiwan Vice Premier Cheng Li-chiun emphasized in a television interview broadcast by CTS that the island’s semiconductor ecosystem, built over decades, could not be relocated without severe disruption. “I have made it very clear to the United States that this is impossible,” Cheng said, responding to recent calls from U.S. officials for a significant production shift.

Complexity of Relocating Chip Manufacturing

The remarks highlight Taiwan’s determination to maintain its position as a global leader in chip manufacturing. Analysts note that relocating large-scale semiconductor production would be extraordinarily complex, involving advanced fabrication facilities, suppliers, skilled labor, and research capabilities unique to the Taiwan semiconductor industry.

Investments Abroad Complement Domestic Growth

Cheng stressed that while Taiwan would continue to invest and expand capacity at home, it was also open to collaborations abroad. Recent years have seen Taiwanese chipmakers increasing investment in the U.S., particularly in building fabrication plants and research centers. However, the government clarified that such investments are intended to complement, not replace, the domestic Taiwan semiconductor industry.

Taiwan Semiconductor Industry Remains Central

Industry observers said the statements underline the importance of the Taiwan semiconductor industry as the backbone of global technology supply chains. Taiwan produces some of the world’s most advanced chips, which are critical for smartphones, computers, automotive electronics, and emerging technologies like artificial intelligence.

Despite the pushback, Taiwan continues to pursue strategic partnerships internationally. American firms remain key customers, and Taiwanese chipmakers are gradually expanding their footprint in the U.S. to meet local demand. Still, the core of the Taiwan semiconductor industry will remain in Taiwan, with the government committed to supporting domestic growth. Experts believe global technology markets will continue to rely on the Taiwan semiconductor industry in securing critical supply chains.