Taiwan pressured to move 50% of chip production to US or lose protection

In a significant move, the Trump administration is urging Taiwan to transfer 50% of its chip manufacturing to the United States. This push comes with a warning: without this shift, Taiwan may jeopardize its protection against potential threats from China, as stated by US Commerce Secretary Howard Lutnick during an interview with NewsNation. Currently, Taiwan is responsible for approximately 95% of the chips utilized in smartphones, vehicles, and essential military technologies. Lutnick emphasized the critical nature of this supply chain, pointing out that having such a large percentage of chips produced 9,000 miles away poses a risk to the United States. He stated that the situation is dire, especially as China has openly threatened to assert control over Taiwan. Lutnick raised concerns about the implications for US defense capabilities, questioning how the nation would maintain its technological edge if it lost access to Taiwan's chip supply. He asserted that the ability to produce chips is directly tied to national defense, stating, "If you can't make your own chips, how can you defend yourself?" His goal is to increase US chip production from the current 2% to 40%, a feat he admits will require not only time but also the full cooperation of Taiwan. Experts have warned that this transition may not be achievable within a single presidential term. Nvidia CEO Jensen Huang has previously noted that the US could be looking at a timeline of 10 to 20 years before achieving supply chain independence, calling it a practical challenge. Acknowledging the difficulties ahead, Lutnick described the task as "herculean" and mentioned the need to reassure Taiwan that it would not be disadvantaged in such a transition. He pointed out that it's not typical for Taiwan to consider giving up its leadership position in global chip supply, along with the security assurances it currently enjoys from its allies.