US EditionTaiwan will invest $250 billion in U.S. chipmaking under new trade deal
Taiwanese firms commit $250 billion in U.S. investments with matching credit guarantees, while tariffs on Taiwanese goods will be capped at 15%, the U.S. Commerce Department said.
- On Thursday, January 15, 2026, the United States and Taiwan signed a trade and investment agreement that establishes a strategic partnership to strengthen U.S. semiconductor supply chains, the Department of Commerce said.
- To reverse decades of offshoring, the agreement aims to reshore semiconductor manufacturing and address tariff uncertainty over the past year for U.S. firms and chip companies under the Section 232 tariff framework.
- Taiwanese semiconductor and technology companies committed to at least $250 billion in new, direct investments, and Taiwan will provide $250 billion in credit guarantees to support the U.S. semiconductor supply chain.
- Under the pact, new U.S. fabs gain temporary duty-free import allowances, letting companies building U.S. chip fabs import 2.5 times capacity during construction and 1.5 times after completion.
- With geopolitical risk in mind, Taiwan will invest $250 billion in U.S. chipmaking, establishing industrial parks and accelerating Arizona fabs, as TSMC pledges roughly $165 billion.
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Trump administration strikes $250 billion trade deal with Taiwan in midst of tech battle with China
The deal directs Taiwanese semiconductor and technology companies to directly invest at least $250 billion in building and expanding advanced semiconductor, energy, and artificial intelligence production and innovation capacity in the United States.
Taiwan and the United States signed a trade agreement on Thursday, 15 January, providing for a reduction in US customs duties in exchange for an investment of at least US$250 billion from semiconductor companies. An additional US$250 billion could be added.
With tariffs as a means of pressure, US President Donald Trump forces Taiwan to shift its chips to the largest ever. Taiwanese critics warn: The security of island democracy is at stake.
China fumes as US signs new trade deal with Taiwan to cut tariffs, boost chip sale
China criticised a new US–Taiwan trade deal lowering tariffs to 15% in exchange for major Taiwanese investments as Taipei welcomed the pact amid Beijing’s objections and rising geopolitical and semiconductor stakes.
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