Taiwan invests $250 billion in semiconductor manufacturing in the United States

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

Under the agreement announced by the US Commerce Department on Thursday, Taiwanese semiconductor and technology companies agreed to make $250 billion in direct investments in the US semiconductor industry. These investments will extend to semiconductor production and innovation, energy and artificial intelligence, according to a press release. Taiwan currently produces more than half of the world’s semiconductors.

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

In return, the United States will invest in Taiwan’s semiconductor, defense, artificial intelligence, communications, and biotechnology industries. The press release did not specify a specific dollar amount associated with the US side of the deal.

The news comes a day after the Trump administration published an announcement that reiterated the country’s goal of bringing more semiconductor manufacturing back to the United States and acknowledged that the process will take time as only 10% of semiconductors are produced in the United States.

“This reliance on foreign supply chains represents a significant risk to the economy and national security,” the announcement said. “Given the foundational role that semiconductors play in the modern economy and national defense, disruption of import-dependent supply chains could strain U.S. industrial and military capabilities.”

The announcement, which announced 25% tariffs on some advanced AI chips, also stipulated that once trade talks with other countries – such as this deal with Taiwan – are complete, there will be additional tariffs on semiconductors.