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Taiwan will invest $250 billion in U.S. chipmaking under new trade deal

Taiwanese firms will invest $250 billion and guarantee $250 billion in credit to expand U.S. semiconductor production amid tariff reductions and strategic economic cooperation.

  • 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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Lean Left

The governments in Washington and Taipei agree on a trade agreement. Taiwan wants to become strategic AI partner of the US and invest 250 billion dollars.

·Germany
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Center

The U.S. has confirmed a trade agreement with Taiwan. The U.S. has reduced Taiwan's rate of duty to 15 percent, as announced by the Department of Commerce in Washington on Thursday. In return, Taiwan has pledged "new direct investments of at least 250 billion dollars" (around 215 billion euros) in the U.S. Investments should flow to the semiconductor industry in the U.S. as well as to artificial intelligence. Sector-specific tariffs on Taiwanese…

·Germany
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Lean Right

The United States and Taiwan have signed an agreement to reduce import tariffs to 15%, along with some tax exemptions, in exchange for Taiwanese tech giants investing at least $250 billion in the United States.

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Portfolio broke the news in on Thursday, January 15, 2026.
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