economy

January 15, 2026

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

The U.S. and Taiwan have reached a trade agreement to build chips and chip factories on American soil, the Department of Commerce announced Thursday.

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

TL;DR

  • Taiwanese chip companies will invest at least $250 billion in U.S. production capacity.
  • The Taiwanese government will guarantee $250 billion in credit for these companies.
  • The U.S. will limit reciprocal tariffs on Taiwan to 15%, down from 20%.
  • Zero reciprocal tariffs will apply to generic pharmaceuticals, their ingredients, aircraft components, and some natural resources.
  • Taiwan Semiconductor Manufacturing Co. (TSMC) may expand in Arizona.
  • Companies building chip fabs in the U.S. will be allowed to import materials tariff-free up to 2.5 times their building capacity during construction.
  • Taiwanese auto parts, lumber, and related products will avoid tariffs over 15%.
  • The objective is to bring 40% of Taiwan's semiconductor supply chain to the U.S.
  • TSMC has already invested up to $40 billion in Arizona fabs under the CHIPS Act.
  • The deal aims to increase U.S. self-sufficiency in semiconductor manufacturing.

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