Taiwan to invest $250 billion in US semiconductor manufacturing

The Trump administration signed a high-profile multibillion-dollar trade deal with Taiwan aimed at helping the United States boost domestic semiconductor manufacturing.

Taiwanese semiconductor and high-tech companies have agreed to make $250 billion in direct investments in the U.S. semiconductor industry under a deal announced Thursday by the U.S. Department of Commerce. These investments span “production and innovation” in semiconductors, energy and AI, according to a press release. Taiwan currently produces more than half of the world’s semiconductors.

According to the Commerce Department, Taiwan will provide an additional $250 billion in credit guarantees for additional investments from these semiconductor and high-tech companies. The duration of these investments is unknown.

In return, the United States will invest in Taiwan’s semiconductor, defense, AI, communications, and biotech industries. The press release did not specify the amount involved in the U.S. agreement.

The news comes a day after the Trump administration issued a statement reiterating the country’s goal of bringing more semiconductor manufacturing back to the United States, acknowledging that the process will take time as only 10% of semiconductors are produced in the United States.

“Reliance on foreign supply chains is a significant economic and national security risk,” the declaration states. “Given the fundamental role semiconductors play in the modern economy and national defense, disruptions to import-dependent supply chains could strain U.S. industrial and military capabilities.”

The declaration announces a 25% tariff on some advanced AI chips, and also states that additional semiconductor tariffs will be imposed once trade negotiations with other countries, such as the current agreement with Taiwan, are completed.