Taiwan has rejected a US proposal for America to produce half of its chips domestically, underscoring trade tensions.

Vice Premier Cheng Li-chiun said the plan came from Washington and Taiwan has not agreed.

He stressed the matter was not part of recent negotiations and Taiwan will not accept the condition.

Taiwan instead wants to address the Section 232 investigation, which now affects more products.

The US says the proposal aims to reduce risks from reliance on Taiwan’s chip industry, especially after shortages exposed vulnerabilities in key sectors.

🔗 Source: Bloomberg