US Asks Taiwan to Move Half Its US-Bound Chip Production to America

The Trump administration has made a demand to Taiwan to relocate half of its semiconductor production destined for the US to American territory. This move, aimed at the world's largest chip manufacturer, TSMC (Taiwan Semiconductor Manufacturing Company), is intended to address serious national security concerns.

At the heart of Washington's decisive stance is the US's extreme dependence on advanced Taiwanese chips, which are vital for both the American economy and its military industry. The White House is increasingly concerned that a possible Chinese invasion of Taiwan could paralyze semiconductor supplies, leaving the US in an extremely vulnerable position.

With this move, the Trump administration is trying to secure supply chains by moving critical production to its own territory. This is in line with the broader US strategy of reducing dependence on potential adversaries or geopolitically unstable regions.

However, this demand puts Taiwan and TSMC in an extremely difficult situation. Relocating production capacity of this scale requires huge financial investments and logistical efforts, as the construction and operation of factories in the US are much more expensive than in Taiwan.

In addition to the economic factor, there is also a strategic dilemma. For decades, Taiwan's dominance in the chip manufacturing industry has been seen as its "silicon shield"—the idea that the island is too important to the global economy for the US or other countries to allow a Chinese invasion. Moving part of the production to the US could weaken this shield, reducing Taiwan's strategic importance.

Thus, Taiwan finds itself caught between two fires, forced to choose between satisfying the demands of its main security ally and protecting its own economic and strategic interests. The outcome of these negotiations could be crucial not only for the US and Taiwan but also for the future of the global technology industry.