Benzingaยท2025-10-01 06:58Core Points - Taiwan has rejected the U.S. proposal for a 50-50 split in semiconductor production, emphasizing that no commitment was made during tariff negotiations [2][4][5] - Taiwan's Vice Premier Cheng Li-chiun confirmed that the issue of chip production was not discussed in recent talks with the U.S. [2][3] - Taiwan plans to purchase $10 billion worth of U.S. agricultural products over the next four years, indicating ongoing trade relations despite semiconductor tensions [3] Group 1: Semiconductor Production - The rejection of the U.S. proposal comes amid rising geopolitical tensions and a push from Washington to relocate semiconductor production to the U.S. [4][5] - Taiwan Semiconductor Manufacturing Co. (TSMC) continues to invest heavily in chip factories in Arizona, with a total investment of $165 billion, but the majority of production will remain in Taiwan [6] Group 2: Trade Relations - Taiwan holds a substantial trade surplus with the U.S. and is currently subject to a 20% tariff on its exports to the U.S. [6] - The Taiwanese government is engaged in substantive tariff consultations with the U.S., indicating a focus on improving trade relations [3]