Taiwan rejects Trump's demand to shift 50% of chip manufacturing into US (arstechnica.com)

There's nothing in it for Taiwan. This administration has made it clear they will not confront China over attack on Taiwan so they have no cards here.

How would... Taiwan even do that? Nationalise TSMC?

Trump, and to a large extent Trumpworld in general, seems to believe that countries are... kind of unitary entities? It is, in general, not governments making things or buying things or selling things, it is companies.