TAIPEI (Taiwan News) — KMT lawmakers on Monday condemned Washington’s proposal for a “50-50” split in semiconductor production between Taiwan and the US.

US Commerce Secretary Howard Lutnick told NewsNation on Sunday that he pitched an idea for Taiwan and the US to each produce half of the chips. KMT Legislator Hsu Yu-chen (許宇甄) countered that, "This is, in essence is not a so-called ‘trade agreement’ at all, but an exploitation and plundering of Taiwan,” per CNA. 

Hsu said that requiring half of Taiwan’s chip production capacity to remain at home and half to be relocated to the US is not cooperation but a forced division of Taiwan’s most vital industry. She argued that Taiwan’s semiconductor sector, known as the “Silicon Shield,” relies on concentrated advantages and irreplaceability to help maintain peace in the Taiwan Strait.

If Washington forces TSMC’s most advanced capacity to be split, the effectiveness of the shield would weaken and Taiwan’s security leverage would vanish, Hsu warned. She added that the government must already be aware of this “selling out Taiwan” arrangement.

“Lutnick brazenly declaring that ‘a major deal with Taiwan is coming soon’ shows negotiations are already underway, but the Taiwanese people have been kept completely in the dark," said Hsu.

“Facing barbarians at the gate, the government dares not tell the people what will be sacrificed,” she claimed. Hsu accused the government of secretly handing over Taiwan’s “sacred mountain” of semiconductors, which she called a betrayal of the people and an act of treason.

She stressed that if Taiwan continues to passively accept this, it is tantamount to admitting that it is merely a pawn of the US. Taiwan needs allies, she said, but not those who prioritize their own security over Taiwan’s survival.

President Lai Ching-te (賴清德) should explain the government’s bottom line in US negotiations, Hsu said. If the government stays silent, it would confirm that such a “selling out Taiwan deal," and Lai should address the Legislative Yuan to clarify the situation.

KMT Legislator Huang Chien-hao (黃健豪) said the US push to diversify risks is already clear. Huang claimed that the US would need US$500 billion in investments to make chips there. 

Huang said Washington should treat short-term trade deficits as part of that investment, rather than imposing punitive tariffs on other Taiwanese industries. From a security standpoint, he added, the US has already warned Taiwan of a looming crisis and the need to relocate key assets and technologies.

Taiwan’s government, Huang argued, should focus on reducing risks on the conflict frontlines rather than imagining itself as a chess player.