The US is set to lower tariffs on Taiwanese goods to 15% after Taiwan pledged massive investments to boost semiconductor production in the country.
Taiwanese tech and chip companies have promised at least $250 billion in new investments. The deal also offers tariff exemptions for firms that invest in the US, encouraging more companies to bring their operations stateside.
Semiconductors, which power everything from smartphones to cars, became a top priority after the COVID-19 pandemic exposed weaknesses in global supply chains. Commerce Secretary Howard Lutnick said the agreement will help the US produce more chips domestically and reduce reliance on imports.
Major companies like TSMC, Taiwan’s leading chip maker, have already set up operations in the US. Its Arizona plant, opened in 2024 with $40 billion in US government support, makes chips for Nvidia, Apple, and AMD.
Lutnick said the new deal could lead to further expansion by TSMC and encourage smaller chip companies to relocate to the US. The Taiwanese government will also provide another $250 billion to back firms investing in the US.
The partnership aims to strengthen US chip production and make global supply chains more reliable, helping prevent future shortages.
