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Taiwan 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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The agreement signed by Washington and Taipei provides for massive investments by Taiwanese companies on US soil, in return for a drop in US tariffs.

·Paris, France
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Center

China said on Friday "resolutely" oppose the US trade agreement with Taiwan providing for the development of semiconductor production on US soil, in return for the lower tariffs on Taiwanese products. ...

·Brussels, Belgium
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Hamilton Journal-News broke the news in on Thursday, January 15, 2026.
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