Taiwan has pushed back on a U.S. request to move chip production stateside to cover half of America’s demand, underscoring the tensions complicating trade talks between the two sides.

Vice Premier Cheng Li-chiun said Wednesday that the idea of having the U.S. produce 50% of the semiconductors it needs came from Washington, and Taiwan has never made such a commitment.

"This issue was not discussed in this round of negotiation, and we will not agree to such a condition,” Cheng said.