Taiwan has agreed to make a massive investment in U.S. semiconductor manufacturing under a new trade deal with the Trump administration aimed at strengthening domestic chip production.
The agreement, announced Thursday by the U.S. Department of Commerce, will see Taiwanese semiconductor and technology companies invest $250 billion directly into the U.S. semiconductor industry, spanning chip manufacturing, energy, and artificial intelligence production and innovation. Taiwan currently produces more than half of the world’s semiconductors, making the deal a significant shift in global supply chains.
In addition to the direct investment, Taiwan will provide another $250 billion in credit guarantees to support further investments by its semiconductor and technology firms, though the Commerce Department did not specify the timeframe for these commitments. In return, the United States will invest in Taiwan’s semiconductor, defense, AI, telecommunications, and biotechnology sectors, but no dollar amount was disclosed for the U.S. portion of the agreement.
The announcement follows a proclamation issued a day earlier by the Trump administration reaffirming its push to bring more semiconductor manufacturing back to the United States, a process officials acknowledge will take time. Currently, only about 10% of the world’s semiconductors are produced in the U.S., a reliance the administration has described as a significant economic and national security risk.
The proclamation also introduced 25% tariffs on certain advanced AI chips and warned that additional semiconductor tariffs could be imposed once ongoing trade negotiations with other countries, including Taiwan, are completed, signaling further shifts ahead in the global chip market.
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