TAIPEI (dpa-AFX) - The American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States have signed a trade agreement that will drive a massive reshoring of America's semiconductor sector. This commitment is designed to strengthen U.S. economic resilience, create high-paying jobs, and bolster national security, the U.S. Department of Commerce said in a statement.
The agreement establishes a strategic economic partnership between the United States and Taiwan to decisively reinforce U.S. domestic semiconductor supply chains and secure America's technological and industrial leadership.
Under the deal, Taiwanese semiconductor and technology enterprises will make direct investments totaling at least $250 billion to build and expand advanced semiconductor, energy, and artificial intelligence production and innovation capacity in the United States. In addition, Taiwan will provide credit guarantees of at least $250 billion to facilitate further investment by Taiwanese enterprises, supporting the establishment and expansion of the full semiconductor supply chain and ecosystem in the U.S.
The partnership also calls for the creation of world-class industrial parks in the United States. These clusters will strengthen America's industrial infrastructure and position the country as the global hub for next-generation technology, advanced manufacturing, and innovation.
Taiwan will further facilitate U.S. investment in its own semiconductor, AI, defense technology, telecommunications, and biotechnology industries. This will expand market access for American companies, deepen technological collaboration, and reinforce U.S. leadership in critical and emerging industries.
The agreement also introduces a predictable tariff framework to enhance balanced trade. The U.S. reciprocal tariff rate applied to Taiwanese goods will be capped at 15 percent. Section 232 duties on Taiwanese auto parts, timber, lumber, and wood derivative products will also be limited to 15 percent. Meanwhile, the United States will apply a zero percent reciprocal tariff for generic pharmaceuticals, their ingredients, aircraft components, and unavailable natural resources.
Future Section 232 duties on Taiwanese semiconductors will be structured to reward companies that invest in the United States. Taiwanese firms building new U.S. semiconductor capacity may import up to 2.5 times their planned capacity without paying Section 232 duties during the approved construction period, with preferential rates for above-quota imports. Companies that have completed new chip production projects in the U.S. will continue to benefit, being allowed to import 1.5 times their new domestic production capacity duty-free.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
