U.S. Commerce Secretary: Taiwan should limit chip production to 50% of America's needs.

U.S. Semiconductor Strategy: The Trump administration is urging Taiwan to shift semiconductor production to the U.S. to achieve a "50-50" split in manufacturing, aiming to reduce American dependence on Taiwan's chip production, which currently accounts for over 90% of the world's advanced semiconductors.

National Defense Implications: U.S. Secretary of Commerce Howard Lutnick expressed concerns about Taiwan's dominance in chip production, suggesting that a more balanced production would enhance Taiwan's security against potential military threats from China, while still maintaining some reliance on Taiwanese manufacturing.

Investment and Tariff Proposals: The U.S. plans to invest over $500 billion to boost domestic semiconductor production, with TSMC committing to invest $165 billion in U.S. facilities. The Trump administration has also proposed 100% tariffs on semiconductors, with exemptions for companies investing domestically.

Geopolitical Context: The U.S. has reaffirmed its commitment to support Taiwan amid increasing military exercises by China, while discussions continue regarding Taiwan's financial contributions to its defense and the broader implications of U.S.-Taiwan trade negotiations.