Taiwan to invest $250 billion in US tech and cut tariffs on exports

Pcgamer reports Taiwan's vice premier Cheng Li-chiun announced a deal that should slash tariffs on the country's exports to the US and that Taiwan will boost its investment in the US tech industry, particularly in silicon production for AI. U.S. commerce secretary Howard Lutnick said the deal will see Taiwan put $250 billion towards AI, semiconductor production, and energy (via Reuters).

That total includes $100 billion from chipmaker TSMC, which it had already committed as part of plans to build new fabs in the US. Both TSMC and the Taiwanese government have also pledged further investment, and Taiwan said it would guarantee an additional $250 billion in credit to encourage reciprocal US investment.

Vice Premier Cheng said, "In this negotiation, we promoted two-way Taiwan–U.S. high-tech investment, hoping that in the future we can become close AI strategic partners." Lutnick told CNBC the Trump administration's goal was to bring 40% of Taiwan’s semiconductor supply chain to the US and said tariffs could be levied at 100% if chipmakers did not build on American soil.

Key Topics

Tech, Taiwan, Tsmc, Semiconductors, Cheng Li-chiun, Howard Lutnick