In a recent exclusive interview, U.S. Secretary of Commerce Lutnick reaffirmed that the U.S. government is on the cusp of securing a major trade agreement with the Taiwan region. Furthermore, he emphasized the ongoing promotion of the '50-50 split' initiative for semiconductor manufacturing capacity. This strategy proposes that the U.S. and Taiwan should each account for 50% of global chip production.

Lutnick presented a stance that runs counter to the 'Silicon Shield' theory. He contended that only by having a robust domestic chip production capacity can the U.S. provide enduring support for Taiwan and genuinely bring benefits to the region. He highlighted that, at present, up to 95% of the chips used in mobile phones and automobiles worldwide are manufactured in Taiwan. Given the significant geographical distance between Taiwan and the U.S., this supply arrangement is unfavorable for the U.S.

Lutnick stated that one of the key goals of the Trump administration is to substantially shift chip manufacturing back to the U.S. During its tenure, the administration aims to raise the proportion of domestically produced chips in the U.S. from a mere 2% to an ambitious 40%, a target that was initially seen as nearly unattainable. Lutnick acknowledged that achieving this objective would necessitate investments exceeding $500 billion and the establishment of a comprehensive supply chain. He stressed that Taiwan's involvement is of paramount importance.

He underscored that while the U.S. would still rely heavily on Taiwan, possessing half of the global production capacity would grant the U.S. greater autonomy and operational capabilities. Currently, Taiwan dominates global chip production, accounting for approximately 95% of the total. Achieving the '50-50 split' would require extensive negotiations and coordination among various stakeholders.