Taiwan will invest $250B in US semiconductor industry
What's the story
Trump administration has signed a landmark multi-billion-dollar trade agreement with Taiwan, aimed at bolstering domestic semiconductor manufacturing in the US. Under this deal, announced by the US Department of Commerce, Taiwanese semiconductor, and tech firms have pledged direct investments worth $250 billion into the US semiconductor sector. The investment will cover semiconductors, energy, and AI "production and innovation."
Investment details
Taiwan's additional support and US response
Along with the direct investments, Taiwan has also pledged an extra $250 billion in credit guarantees for further investments from these semiconductor and tech firms. However, the exact duration of these investments remains unclear. In return for this massive investment from Taiwan, the US has promised to invest in Taiwan's semiconductor, defense, AI, telecommunications, and biotech industries.
Tariff implementation
US aims to reduce reliance on foreign semiconductor supply chains
The trade deal comes a day after the current administration issued a proclamation reiterating its commitment to bringing more semiconductor manufacturing back to the US. The proclamation acknowledged that this process would take time, as only 10% of semiconductors are currently produced in America. It also highlighted the economic and national security risks posed by dependence on foreign supply chains for such critical components.