Taiwan will invest $250 billion in U.S. chipmaking under new trade deal
Taiwanese firms will invest $250 billion in U.S. chip production with an additional $250 billion in government credit guarantees, boosting U.S. semiconductor supply chains, officials 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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US and Taiwan sign $250B trade deal, cutting tariffs on Taiwanese goods
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US, Taiwan sign $250 bil. trade deal, cutting tariffs on Taiwanese goods
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The US and Taiwan have concluded a trade agreement.
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