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The Trump administration is pushing Taipei to shift investment and chip production to the U.S. so that half of America's chips are manufactured domestically, in a move that could have implications for Taiwan's national defense.

Washington has held discussions with Taipei about the "50-50" split in semiconductor production, which would significantly reduce American dependence on Taiwan, U.S. Secretary of Commerce Howard Lutnick told News Nation in an interview released over the weekend.

Taiwan is said to produce over 90% of the world's advanced semiconductors , which, according to Lutnick, is cause for concern due to the island nation's distance from the U.S. and proximity to China.

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