Trump urges semiconductor powerhouse Taiwan to boost US investment, especially in AI chip manufacturing.
Taiwan aims to build a democratic high tech supply chain with the United States and forge a strategic partnership on artificial intelligence under a new tariffs agreement sealed with Washington, Taipei’s chief negotiator said.
Vice Premier Cheng Li chiun said the deal would strengthen cooperation with the United States while safeguarding Taiwan’s globally important semiconductor industry. The agreement comes as US President Donald Trump presses Taiwan, a major chip producer with a large trade surplus with the United States, to invest more heavily in American manufacturing, particularly AI related chips.
Under the deal, chipmakers such as TSMC that expand production in the United States will face lower tariffs on semiconductors and related equipment imported into the country, with some items allowed in duty free. Broad tariffs on most other Taiwanese exports to the United States will fall to 15% from 20%.
Taiwanese companies will also invest $250 billion in the United States across semiconductors, energy and artificial intelligence, while Taipei will guarantee a further $250 billion in credit to support additional investment.
Cheng rejected concerns that the agreement would hollow out Taiwan’s chip sector, often described as the island’s economic backbone. She said the goal was to extend Taiwan’s technological strengths overseas rather than relocate supply chains.
Cheng said Taiwan had secured the most favourable terms possible, regardless of the final tariff rate, as both sides seek to lead a democratic aligned technology supply chain amid growing global competition.
