Summary
The United States will reduce tariffs on Taiwanese goods to 15% after receiving commitments for significant investments in the U.S. semiconductor industry from Taiwan. These investments aim to boost U.S. production of semiconductor chips, a crucial component in many electronic devices. This agreement involves over $250 billion in new direct investments and additional financing from the Taiwanese government.
Key Facts
- The U.S. will cut tariffs on Taiwanese goods to 15% in exchange for major investments from Taiwan.
- Taiwan's semiconductor companies have committed to at least $250 billion in new investments in the U.S.
- The deal includes exemptions from tariffs for Taiwanese semiconductor firms investing in the U.S.
- U.S. aims to increase domestic semiconductor production after pandemic-related supply chain issues.
- Semiconductor shortages highlighted the need for improved supply chain security during the Covid-19 pandemic.
- U.S. subsidies have supported investment from large companies like TSMC, a leading Taiwanese manufacturer.
- TSMC opened a plant in Arizona in 2024 with help from $40 billion in U.S. subsidies.
- The Taiwanese government will also provide $250 billion in financing to support these investments.
