Lutnick Suggests 50-50 Chip Manufacturing Split as Part of Taiwan Trade Deal
Commerce Secretary Howard Lutnick said that he proposed a chip manufacturing scheme to Taiwanese officials that would see 50% of manufacturing shifted to the U.S. as part of a larger trade deal with the country.
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During a Sept. 27 interview with NewsNation, Lutnick was asked what he was looking for from Taiwan to make a trade deal, and he responded that Taiwan makes 95% of U.S. chips and his objective is "to get chip manufacturing significantly on-shored. We need to make our own chips."
Lutnick said that for the U.S. to protect Taiwan, "we need enough [chip] production," and that the proposal he "pitched them was, let's get to 50-50. We're producing half, and you're producing half." He said that goal "has been the conversation we've had with Taiwan," and that what the Taiwanese "have to understand" is that "it's vital for you to have us produce 50%" of chips.
Lutnick also reiterated his belief (see 2509120036) that a trade deal with Taiwan will emerge soon, saying: "That's a big one that's coming. I think pretty soon, I expect to really be talking to them and sorting that out."