Taiwan has rejected a US  deal to split semiconductor production evenly between the two countries, Reuters reported on Wednesday, citing a senior Taiwanese official. If Taiwan maintains this position, it would be a setback for the Trump administration’s efforts to move half of the production to the United States.

Taiwan Vice Premier Cheng Li-chiun, who led tariff talks with Washington, told reporters on her return that her 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 Taiwan's Central News Agency.

US Commerce Secretary Howard Lutnick had said over the weekend in an interview with News Nation that Washington had proposed a 50-50 split in semiconductor production, most of which is currently based in Taiwan.

Taiwan is home to TSMC, the world’s largest contract chipmaker, which is investing $165 billion to build factories in Arizona, although most production will continue to take place in Taiwan. The island maintains a large trade surplus with the United States, and its exports to Washington currently face a 20% tariff.

Cheng noted that detailed discussions during the talks had resulted in "certain progress" on tariff issues. Taiwan Premier Cho Jung-tai told parliament on Tuesday that "the most critical substantive consultations are currently underway," while President Lai Ching-te met US Under Secretary for Trade and Foreign Agricultural Affairs Luke J. Lindberg to discuss trade, including agricultural agreements.

The expected delay in semiconductor negotiations comes as US farmers, especially soybean producers, face continued pressure after China halted purchases in response to US tariffs. Beijing, which normally accounts for at least a quarter of US soybean exports, stopped buying in May after President Donald Trump imposed steep tariffs on Chinese goods, making South American crops more competitive, the Associated Press reported.

In 2023, the US soybean exports totalled nearly $24.5 billion, with China purchasing $12.5 billion of that. This year, Chinese purchases have fallen to zero, while the European Union, the second-largest buyer, imported only $2.45 billion last year.