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Taiwan Rejects U.S. Proposal for 50-50 Chip Production Split

Taiwan Rejects U.S. Proposal for 50-50 Chip Production Split
Above: An AI Expo in Taipei, Taiwan, on March 26, 2025. Image copyright: Daniel Ceng/Anadolu/Getty Images

The Spin

Pro-establishment narrative

Taiwan owes its very survival to U.S. protection, yet it balks at a fair 50-50 split on chip production while pocketing billions in subsidies. To spurn America’s hand after siphoning off its industry is not strategic caution but sheer ingratitude — an ally demanding insurance without paying the premium, all while relying on U.S. lives to shield its immense wealth.

Establishment-critical narrative

Taiwan is irreplaceable to America — home to 92% of the world’s most advanced chips, powering everything from iPhones to missile systems. No amount of money can quickly replicate its decades-old mastery or global supply dominance. To lose Taiwan would cripple U.S. industry, imperil security, and hand China economic leverage and strategic control of the Pacific.

Pro-China narrative

Taiwan is merely reaping what it sowed. By tethering its fortunes to Washington’s whims, it drained its own talent, hollowed out its industry, and handed leverage to a partner that sees it as expendable. Having built its empire on America’s back, Taiwan now finds itself cornered.

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© 2025 Improve the News Foundation. All rights reserved.Version 6.17.0

© 2025 Improve the News Foundation.

All rights reserved.

Version 6.17.0