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Taiwan rejects U.S. proposal of '50-50' chip production, says trade talks focused on tariffs

1. Taiwan rejects U.S. proposal for a 50-50 chip production split. 2. Current U.S. reliance on Taiwan for 95% of chip demand highlighted. 3. Taiwan's politicians condemn the U.S. proposal as exploitative. 4. Taiwan's semiconductor industry vital for its defense against China. 5. U.S. aims to reduce dependence on Taiwanese chip manufacturing.

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FAQ

Why Bearish?

The rejection of the U.S. proposal may heighten geopolitical tensions, affecting markets. Historically, similar tensions have led to market volatility.

How important is it?

Given the S&P 500's exposure to tech, chip supply issues could impact major players. The semiconductor industry's significance makes this news relevant to broader market performance.

Why Long Term?

Ongoing geopolitical issues can influence investor sentiment over time. Disruptions in the semiconductor supply chain can have lasting consequences.

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