Taiwan to invest $250B in US semiconductor manufacturing

The Trump administration has signed a major multibillion-dollar trade agreement with Taiwan to strengthen domestic semiconductor manufacturing in the United States.

Under the agreement announced Thursday by the U.S. Department of Commerce, Taiwanese semiconductor and technology companies have committed to invest $250 billion in the U.S. semiconductor sector. According to a Commerce Department press release, the investments will cover semiconductors, energy, and AI-related production and innovation. Taiwan currently accounts for more than half of global semiconductor production.

In addition to direct investments, Taiwan will provide $250 billion in credit guarantees to support further investments by Taiwanese semiconductor and technology firms in the United States. The Commerce Department did not specify the timeline for deploying these investments and guarantees.

As part of the agreement, the United States will invest in Taiwan’s semiconductor, defence, artificial intelligence, telecommunications, and biotechnology industries. The press release did not disclose a specific dollar amount for the U.S. portion of the deal.

The announcement follows a proclamation issued a day earlier by the Trump administration reaffirming its goal of expanding semiconductor manufacturing within the United States. The declaration acknowledged that reshoring production would take time, noting that only about 10% of the world’s semiconductors are currently manufactured in the U.S.

“This dependence on foreign supply chains is a significant economic and national security risk,” the proclamation stated. “Given the foundational role that semiconductors play in the modern economy and national defense, a disruption of import-reliant supply chains could strain the United States’ industrial and military capabilities.”

The proclamation also introduced 25% tariffs on certain advanced AI chips and indicated that additional semiconductor-related tariffs could follow once trade negotiations with other countries—such as Taiwan—are finalised.