Home / Business and Economy / US Secures $250Bn Chip Investment
US Secures $250Bn Chip Investment
16 Jan
Summary
- US tariffs on Taiwanese goods cut to 15%.
- Taiwanese firms pledge $250bn in new US investments.
- Deal aims to boost domestic semiconductor production.
The United States has announced a significant agreement with Taiwan, involving substantial new investments in the semiconductor sector. Under the terms of this deal, US tariffs on goods imported from Taiwan will be reduced to 15%. This reduction is directly linked to a commitment from Taiwan's semiconductor and technology firms to make new, direct investments totaling at least $250 billion within the US.
This landmark agreement specifically provides exemptions from tariffs for Taiwanese semiconductor companies that choose to invest and establish operations in the United States. This strategic move underscores the US government's ongoing priority to bolster domestic production of semiconductor chips, a critical component for a vast array of modern technologies.
The initiative to enhance US semiconductor manufacturing capabilities has been a key focus, particularly since supply chain disruptions experienced during the Covid-19 pandemic highlighted significant risks. The substantial investment from Taiwan is expected to play a crucial role in mitigating these risks and ensuring a more resilient supply of essential chips for products ranging from automobiles to smartphones.
