News · 19 January 2026
Taiwan commits $250 billion for US chip manufacturing
Photo by Brian Kostiuk on Unsplash
Taiwan and the United States have reached a major trade agreement where Taiwan will invest $250 billion in US chip manufacturing, with another $250 billion in credit guarantees. Under the deal announced by the US Commerce Department, Taiwan will expand semiconductor, energy and AI production capacity on American soil. In exchange, US tariffs on Taiwanese goods drop from 20 percent to 15 percent, with zero tariffs on generic drugs and aircraft parts. The agreement aims to bring 40 percent of Taiwan's chip supply chain to America and includes major chipmaker TSMC expanding its Arizona operations beyond current $100 billion commitments.
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