Home / Business and Economy / US, Taiwan Forge Tech Alliance: $250B Investment Deal
US, Taiwan Forge Tech Alliance: $250B Investment Deal
16 Jan
Summary
- US tariffs on Taiwanese goods reduced to 15% under new agreement.
- Taiwanese chip firms commit to at least $250 billion in US investments.
- Deal aims to bring 40% of Taiwan's chip supply chain to America.
The US commerce department announced a landmark agreement with Taiwan, significantly lowering tariffs on goods from the island to 15%. This tariff reduction is coupled with a substantial commitment from Taiwanese semiconductor and tech businesses to invest at least $250 billion in the United States. These investments are earmarked for building and expanding advanced semiconductor and artificial intelligence capacity on American soil.
The deal is designed to drive a major reshoring of the US semiconductor sector. Taiwan will also provide credit guarantees totaling at least $250 billion to further facilitate these investments. The commerce department stated the objective is to relocate approximately 40% of Taiwan's entire chip supply chain and production capacity to the United States, enhancing domestic self-sufficiency.
