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The Trump administration signed a notable multibillion-dollar trade deal with Taiwan that\u2019s designed to help the United States boost domestic semiconductor manufacturing.<\/p>\n
Under the deal announced by the U.S. Department of Commerce on Thursday, Taiwanese semiconductor and tech companies have agreed to make direct investments of $250 billion into the U.S. semiconductor industry. These investments will span across semiconductors, energy, and AI \u201cproduction and innovation,\u201d according to a press release. Taiwan currently produces more than half of the world\u2019s semiconductors.<\/p>\n
Taiwan will also supply an additional $250 billion in credit guarantees for additional investments from these semiconductors and tech enterprises, according to the commerce department. The time period of these investments is unclear.<\/p>\n
In return, the U.S. will invest in Taiwan\u2019s semiconductor, defense, AI, telecommunications, and biotech industries. The press release did not specify a dollar amount tied to the U.S.\u2019s side of the deal.<\/p>\n
The news comes the day after the Trump administration published a proclamation that reiterated the country\u2019s goal to bring more semiconductor manufacturing back to the United States and acknowledged the process would take time, as only 10% of semiconductors are produced stateside.<\/p>\n
\u201cThis dependence on foreign supply chains is a significant economic and national security risk,\u201d the proclamation stated. \u201cGiven the foundational role that semiconductors play in the modern economy and national defense, a disruption of import-reliant supply chains could strain the United States\u2019 industrial and military capabilities.\u201d<\/p>\n
The proclamation, which announced 25% of tariffs on some advanced AI chips, also stated that once trade talks with other countries \u2014 like this deal with Taiwan \u2014 are complete, there would be additional semiconductor tariffs.<\/p>\n