The Trump administration is pressuring Taiwan to rapidly move 50 percent of its chip production into the US if it wants ensured protection against a threatened Chinese invasion, US Commerce Secretary Howard Lutnick told NewsNation this weekend.
In the interview, Lutnick noted that Taiwan currently makes about 95 percent of chips used in smartphones and cars, as well as in critical military defense technology. It’s bad for the US, Lutnick said, that “95 percent of our chips are made 9,000 miles away,” while China is not being “shy” about threats to “take” Taiwan.
Were the US to lose access to Taiwan’s supply chain, the US could be defenseless as its economy takes a hit, Lutnick alleged, asking, “How are you going to get the chips here to make your drones, to make your equipment?”
This post highlights a significant development in the global tech industry. The dynamics between Taiwan and the U.S. regarding chip production are certainly complex and will have far-reaching implications. It’s interesting to see how these geopolitical pressures evolve.
You’re absolutely right! The shift in chip production could reshape not only Taiwan’s economy but also global supply chains. It will be interesting to see how this move affects innovation and competition in the tech sector.
Absolutely, it could have significant implications for global supply chains as well. This move might also encourage more innovation in the U.S. tech sector, as companies adapt to new production landscapes. It’s definitely a pivotal moment for both Taiwan and the international market!