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Taipei – Taiwan’s top tariffs negotiator said it would be “impossible” to shift 40% of its semiconductor production capacity to the United States as she rejected claims that the island’s chip industry would relocate.

Taiwan is a powerhouse in producing chips — a critical component in the global economy — but the White House wants more of the technology made in America.

Washington agreed in a deal last month to lower tariffs on the island’s goods to 15% from 20%, while Taiwan will increase its investment in the U.S.

U.S. Commerce Secretary official Howard Lutnick said last month that Washington wanted to shift up to 40% of Taiwan’s chip supply chain and production to the U.S., warning tariffs could rise sharply if that did not happen.

That came after he told U.S. media in September that Taiwan’s chip production should be split 50-50 with Washington.

But in an interview broadcast late Sunday by Taiwanese television channel CTS, Vice Premier and lead negotiator Cheng Li-chiun said she had made it clear to U.S. officials that Taiwan’s semiconductor ecosystem would not be relocated.

With regards to “40 or 50% of production capacity (being) moved to the United States ... I have made it very clear to the U.S. side that this is impossible,” Cheng said.

She added that Taiwan’s semiconductor ecosystem was like an “iceberg,” the foundation beneath the water is “enormous,” adding that “an industrial ecosystem built up over decades cannot be relocated.”

She said, “it will only continue to grow larger.”