Taiwan is said to produce over 90% of the world’s advanced semiconductors<\/a>, which, according to Lutnick, is cause for concern due to the island nation’s distance from the U.S. and proximity to China.\u00a0<\/p>\n “My objective, and this administration’s objective, is to get chip manufacturing significantly onshored \u2014 we need to make our own chips,” Lutnick said. “The idea that I pitched [Taiwan] was, let’s get to 50-50. We’re producing half, and you’re producing half.”\u00a0<\/p>\n Lutnick’s goal is to reach about 40% domestic semiconductor production by the end of U.S. President Donald Trump’s<\/a> current term, which would take northwards of $500 billion in local investments, he said.\u00a0<\/p>\n Taiwan’s stronghold on chip production is thanks to Taiwan Semiconductor Manufacturing Co.<\/a>, the world’s largest and most advanced contract chipmaker, which handles production for American tech heavyweights like Nvidia and Apple.\u00a0<\/p>\n Taiwan’s critical position in global chips production is believed to have assured the island nation’s defense against direct military action from China, often referred to as the “Silicon Shield” theory.<\/p>\n However, in his News Nation interview, Lutnick downplayed the “Silicon Shield,” and argued that Taiwan would be safer with more balanced chip production between the U.S. and Taiwan.<\/p>\n “My argument to them was, well, if you have 95% [chip production], how am I going to get it to protect you? You’re going to put it on a plane? You’re going to put it on a boat?” Lutnick said.\u00a0<\/p>\n Under the 50-50 plan, the U.S. would still be “fundamentally reliant” on Taiwan, but would have the capacity to “do what we need to do, if we need to do it,” he added.<\/p>\n Beijing views the democratically governed island of Taiwan as its own territory and has vowed to reclaim it by force if necessary<\/a>. Taipei’s current ruling party has rejected and pushed back against such claims.\u00a0<\/p>\n This year, the Chinese military has held a number of large-scale exercises off the coast of Taiwan as it tests its military capabilities. During one of China’s military drills in April, Washington reaffirmed its commitment<\/a> to supporting Taiwan.\u00a0<\/p>\n More in return for defense<\/p>\n Lutnick’s statements on the News Nation interview aligned with past comments from Trump, suggesting that the U.S. should get more in return<\/a> for its defense of the island nation against China.\u00a0<\/p>\n Last year, then-presidential candidate Trump had said in an interview that Taiwan should pay the U.S. for defense<\/a>, and accused the country of “stealing” the United States’ chip business.\u00a0<\/p>\n The U.S. was once a leader in the global semiconductor market, but has lost market share due to industry shifts and the emergence of Asian juggernauts like TSMC and Samsung<\/a>.\u00a0<\/p>\n However, Washington has been working to reverse that trend across multiple administrations.\u00a0<\/p>\n TSMC has been building manufacturing facilities in the U.S. since 2020 and has continued to ramp up its investments in the country. It announced<\/a> intentions to invest an additional $100 billion in March, bringing its total planned investment to $165 billion.\u00a0<\/p>\n The Trump administration recently proposed 100% tariffs<\/a> on semiconductors, but said that companies investing in the U.S. would be exempt. The U.S. and Taiwan also remain in trade negotiations<\/a> that are likely to impact tariff rates for Taiwanese businesses.\u00a0<\/p>\n![\"US](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/108152306-17485876871748587684-40037117304-1080pnbcnews.jpg\")
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