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50-50 chip production deal with US refused by Taiwan

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50-50 chip production deal

Headlines recently spread that the US was seeking a 50-50 chip production deal with Taiwan, something US Secretary of Commerce Howard Lutnick had mentioned on US television, to move 50% of their production of chips to the US as a quid-pro-quo deal in order for Taiwan to continue to receive support by the US government.

Taiwan produces over 90% of the world’s most advanced computer chips, and 60% of the total semi-conductor market, making it one of the most important technological centres in the world. In the modern society where the computer rules, it makes Taiwan an indispensable ally, especially when semi-conductor fabrication plants are incredibly costly, advanced and take a long time to build.

TSMC and UMC are two of the most important corporations in Taiwan involved in the semi-conductor manufacturing business, receiving hundreds of billions of dollars in revenue.

When Taiwanese Vice Premier Cheng Li-chiun was questioned about the proposal when returning from the US to Taiwan, not only did their negotiating team flatly refuse that such a deal could be agreed, but according to them, it had not even been discussed with them when they had travelled to the US.

“Our negotiating team has never made any commitment to a 50-50 split on chips. Rest assured, we did not discuss this issue during this round of talks, nor would we agree to such conditions,” according to reports by the Central News Agency (CNA).

This development continues to make a mockery of the Trump administration and their ability in international relations. The Trump administration’s preferred methods are seemingly to blackmail countries into submission, with one unreasonable demand after another, none of which are likely to materialise and simply lower the USA’s position globally as a reliable country to deal with.

The idea that Taiwan would give 50% of its chip production over to the US in exchange for security guarantees is laughable in the first place. It would be akin to giving the criminal mafia one of your children in order to safeguard the other against your family joining back with relatives you’d fallen out with.

50-50 chip production deal2

There are already comments online that are starting to propose that maybe it would be better for Taiwan to join back with mainland China, than suffer under the blackmail of the incredibly untrustworthy Trump administration who seemingly flip flop on multiple issues and make unreasonable demands from a different country every week.

We are not even one year into the disastrous Trump’s 2nd term, which is guaranteed to involve more and more chaos as it goes on, and the USA’s international credibility is already in the dirt. Even if a sensible administration takes over from Trump in three years, so much damage will have be done, and so much trust lost. It will be hard for Americans to gain it back, without a complete reset of their delusional beliefs.

Some English comments online say:

“Mafia protection, once you let them in, you can’t get them out, and they’ll keep asking for more or threatening you. Might as well accept China at that point.”

“Taiwan holds all of the proverbial chips in this “discussion”, why would they ever listen to Trump?”

“Taiwanese govt would have had to have rocks in their heads to agree to it.”

“They have learned by watching Ukraine give up her nukes.”

“The USA is playing dangerous not-smart games again. They can not afford to lose Taiwan as a critical chips supplier. Nobody can. So trying to blackmail them was a reckless move.”

Some Chinese comments online say:

“Why not just make Taiwan the 51st state of the U.S.? Then there’s no need to split things, it’d be perfect, right?”

“The results Taiwan has achieved after decades of effort, yet the U.S. just opens its mouth and asks for half. Quite an appetite.”

“Negotiate or stall for a couple of years until the next election.”

“Who knows how much has already been sold privately.”

“Once it all goes to America, Taiwan will just be abandoned.”

“Taiwan refusing the U.S. What a rare phrase.”

“Dare to disobey?”

“Trump: Then get ready for 50% tariffs.”

“Taiwan just wants more conditions, in the end they’ll definitely agree.”

“They could just take it, but pretend like they want to negotiate.”

“Yeah right, just bragging.”

“Dare to? It’s all just talk, they’ll kneel in no time.”

“Upside down nonsense! Slap them with 100% tariffs!”

“Saying this only means the number will increase, not decrease.”

“Trump: You’re not being good now.”

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