US–Taiwan Trade Deal Worth $500 Billion Boosts Semiconductor Industry

A new US–Taiwan trade deal marks a major shift in economic relations between Washington and Taipei, as the United States announced an agreement that lowers tariffs on Taiwanese goods and unlocks massive investments in the American semiconductor sector.

Under the deal, tariffs on Taiwanese shipments will be reduced to 15%, down from previous higher levels, placing Taiwan on equal footing with key partners such as Japan and South Korea.

The move is designed to strengthen competitiveness across advanced chip supply chains.

The US–Taiwan trade deal commits Taiwan’s technology sector to at least $250 billion in direct investment to expand semiconductor, energy, and artificial intelligence operations in the United States, alongside an additional $250 billion in credit guarantees to support the US semiconductor supply chain.

US officials said the agreement offers strong incentives for Taiwanese companies to build and manufacture in America, while warning that failure to comply could result in tariffs as high as 100%.

The policy is seen as a tool to channel foreign investment into domestic production.

Major Taiwanese firms, led by TSMC, are expected to spearhead the investment drive through the construction of large-scale semiconductor manufacturing complexes.

Analysts believe the US–Taiwan trade deal will strengthen America’s position as a global chipmaking hub and reduce reliance on overseas supply.