US Commerce Secretary Pressures Taiwan: "Half of Semiconductors Must Be Made in the US"

Howard Lutnick, U.S. Secretary of Commerce, has reportedly pressured Taiwan to produce half of its semiconductors in the United States.

On September 30 (local time), U.S. broadcaster CNBC reported that Secretary Lutnick, in an interview with NewsNation on September 28, said, "My goal, and the government's goal, is to significantly relocate semiconductor manufacturing facilities domestically and produce them ourselves," adding, "I proposed to Taiwan, 'Let's each produce half and split it 50-50.'"

Howard Lutnick, U.S. Secretary of Commerce. Photo by Reuters Yonhap News

Secretary Lutnick aims to increase the share of U.S. semiconductor production to 40% by the end of President Donald Trump's term. He estimated that more than $500 billion in domestic investment would be required to achieve this goal.

Taiwan, thanks to the world's largest foundry TSMC, produces more than 90% of the world's advanced semiconductors. As a result, semiconductors are considered a "silicon shield" that deters direct military action by China against Taiwan.

However, Secretary Lutnick argued that Taiwan would be safer if the semiconductor production ratio between the United States and Taiwan were balanced. In the interview, he said, "I asked Taiwan, 'If you control 95% of semiconductor production, how can we protect you? Are we supposed to load them onto planes or ships?'" He emphasized that under a 50-50 production structure, the United States would still fundamentally depend on Taiwan, but would have the capacity to do what is necessary.

CNBC analyzed that Secretary Lutnick's remarks are in line with former statements by President Trump. During last year's presidential campaign, President Trump claimed that "Taiwan stole America's semiconductor industry" and argued that Taiwan should pay for U.S. defense costs.

The United States, once a leader in the global semiconductor market, lost market share due to industrial changes and the rise of Asian semiconductor companies such as TSMC and Samsung. The U.S. government has been working to reverse this trend. Since 2020, TSMC has been building factories and expanding investments in the United States. In March this year, TSMC announced an additional $100 billion investment, bringing its total investment to $165 billion.