Archive · 19 Jan 2026
Taiwan to Maintain AI Chip Leadership After US Trade Deal
Taiwan and the United States have made a new trade deal.
This deal lowers the taxes (tariffs) on things Taiwan sells to the US.
It also means Taiwanese companies will invest a lot of money in the US to make more computer chips, which are very important for things like artificial intelligence.
Taiwan says it will still be the best at making these special chips, even with more production happening in the US.
Some people in Taiwan are worried this might hurt their economy, but others think it's a good step.
A big company called TSMC, which makes many of these chips, is happy about the deal and might build more factories in the US.
Taiwan and the US reached a trade deal that lowers tariffs on Taiwanese goods to 15% and increases Taiwanese investment in the US semiconductor sector.
Taiwan pledged to remain the world's leading producer of AI chips, with production capacity split 85-15 between Taiwan and the US by 2030, shifting to 80-20 by 2036.
The deal includes $250 billion in new direct investments and $250 billion in credit guarantees from Taiwan to support the US semiconductor supply chain.
Taiwan Semiconductor Manufacturing Company (TSMC) welcomed the deal and may expand operations in Arizona, US.
Some Taiwanese lawmakers and industry representatives expressed concerns about the potential impact on Taiwan's economy and chip dominance.
- Who
- Taiwan and the United States
- What
- A trade deal that lowers tariffs and increases investment in the US semiconductor sector
- When
- The agreement was reached after months of negotiations and announced on Friday
- Where
- Taiwan and the United States
- Why
- To strengthen the semiconductor supply chain, boost investment, and address trade deficits and unfair practices
- Tariff Rate
- 15%
- Investment Commitment
- $250 billion
- Credit Guarantees
- $250 billion
- Production Split by 2030
- 85-15 (Taiwan-US)
- Production Split by 2036
- 80-20 (Taiwan-US)
- TSMC Investment in US
- $100 billion
- US Tariff on Certain Semiconductors
- 25%