By John Liu, CNN(CNN) — Taiwan has vowed to resist pressure from Washington to shift half of its chip production capacity to the United States, throwing down the gauntlet to the Trump administration. Washington has grown increasingly concerned about its heavy dependence on Taiwan, where chip giant TSMC supplies the vast majority of the world’s advanced semiconductors to major clients like AI chip designer Nvidia and Apple. US Secretary of Commerce Howard Lutnick sparked alarm among Taiwanese over the weekend by demanding in a TV interview that Taiwan split its chip production evenly between domestic and US facilities – adding fresh tensions to the ongoing US-Taiwan trade talks. In the NewsNation interview, Lutnick referred to the concept of a “silicon shield,” saying the US would need 50% of domestic chip production to protect Taiwan. You’re going to put it on a boat?” he said, referring to the rough percentage of global advanced chip production in Taiwan.