Taiwan to invest $250B in US semiconductor manufacturing

The Trump administration signed a landmark multi-billion dollar trade deal with Taiwan aimed at helping the United States boost domestic semiconductor production.

Under the deal announced by the US Commerce Department on Thursday, Taiwanese semiconductor and technology companies have agreed to make direct investments of $250 billion in the US semiconductor industry. These investments will span semiconductors, energy and AI “manufacturing and innovation,” according to a press release. Taiwan is currently producing more than half of the world’s semiconductors.

Taiwan will also provide an additional $250 billion in credit guarantees for additional investments from these semiconductor and technology companies, according to the Commerce Department. The term of these investments is unclear.

In return, the US will invest in Taiwan’s semiconductor, defense, AI, telecommunications and biotech industries. The press release did not specify a dollar amount tied to the U.S. side of the deal.

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

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

The proclamation, which announced 25% tariffs on some advanced AI chips, also stated that once trade negotiations with other countries – such as this deal with Taiwan – are concluded, there would be additional tariffs on semiconductors.