Taipei: Taiwan on Wednesday rejected reports that it had agreed to manufacture 50% of its semiconductors in the United States, as reported by the Central News Agency. Vice Premier Cheng Li-jung, after returning from Washington, stated that their negotiation team had never committed to a 50-50 chip production split with the US. She emphasized that this issue was not discussed during the recent negotiations and that Taiwan would not agree to such terms.

According to Anadolu Agency, the denial came following remarks by US Secretary of Commerce Howard Lutnick, who claimed to have proposed a 50-50 division in chip production to Taiwan. Vice Premier Cheng reassured that the Taiwanese negotiation team had not entertained such a commitment and urged the public to remain confident that this matter was not on the negotiation table.

Cheng further mentioned that Taiwan and the US would move towards a trade agreement once both parties reach a consensus on reciprocal tariffs and supply chain cooperation. She highlighted that the discussion on trade agreements would only proceed after complete consensus is achieved between the two sides.

Currently, Taiwan's exports to the US face a 20% tariff. The nation is a major player in the semiconductor industry, producing more than half of the world's semiconductors. The majority of Taiwan's exports to the US fall under information and communications technology, which includes semiconductor chips.