Taiwan has agreed to make massive new investments in the United States semiconductor sector following a multibillion dollar trade agreement signed with the Trump administration, aimed at strengthening domestic chip production and reducing reliance on foreign supply chains.
Under the deal announced on Thursday by the US Department of Commerce, Taiwanese semiconductor and technology companies will invest 250 billion dollars directly into the US semiconductor industry. The investments will cover semiconductor manufacturing, energy projects, and artificial intelligence production and innovation. Taiwan currently accounts for more than half of global semiconductor production, making the agreement strategically significant for Washington.
In addition to the direct investments, Taiwan will provide a further 250 billion dollars in credit guarantees to support additional investments by its semiconductor and technology firms in the United States. The Commerce Department did not specify the timeline over which the investments and guarantees will be deployed.
In return, the United States has committed to investing in key sectors of Taiwan’s economy, including semiconductors, defense, artificial intelligence, telecommunications, and biotechnology. However, the press release did not disclose the financial value of the US commitments.
The agreement comes amid renewed efforts by the Trump administration to bring semiconductor manufacturing back to American soil. Only about 10 percent of global semiconductor production currently takes place in the United States, a situation the administration has repeatedly described as a national security concern.
A proclamation released a day earlier by the White House emphasized the risks of heavy dependence on foreign semiconductor supply chains, warning that disruptions could undermine both industrial capacity and military readiness.
The same proclamation announced a 25 percent tariff on certain advanced AI chips and indicated that additional semiconductor tariffs could follow once ongoing trade negotiations with other countries are concluded.
US officials have framed the Taiwan deal as a critical step toward rebuilding domestic chipmaking capacity while maintaining strategic partnerships with key technology allies.