The Trump administration signed a significant multibillion-dollar trade deal with Taiwan, designed to bolster domestic semiconductor manufacturing in the United States. Announced by the U.S. Department of Commerce, the agreement secures direct investments of $250 billion from Taiwanese semiconductor and technology companies into the U.S. semiconductor industry. These investments will focus on production and innovation across semiconductors, energy, and artificial intelligence.
Taiwan, which currently produces more than half of the world’s semiconductors, will also provide an additional $250 billion in credit guarantees to support further investments from its tech enterprises. The specific time period for these investments remains unclear.
In return, the United States will invest in Taiwan’s semiconductor, defense, artificial intelligence, telecommunications, and biotech industries. The press release did not specify a dollar amount for the U.S. side of the deal.
This news follows a proclamation from the Trump administration, published the day before, which reiterated the goal of bringing more semiconductor manufacturing back to the United States. The proclamation acknowledged the process would take time, as only ten percent of semiconductors are currently produced domestically. It stated that dependence on foreign supply chains poses a significant economic and national security risk, noting that a disruption could strain the nation’s industrial and military capabilities.
That same proclamation announced 25 percent tariffs on some advanced AI chips and indicated that additional semiconductor tariffs would follow once trade talks with other countries, such as this deal with Taiwan, are complete.