The U.S. Department of Commerce has announced a landmark trade and investment agreement with Taiwan, committing Taiwanese semiconductor and technology companies to invest $250 billion directly into U.S. semiconductor manufacturing and related AI production and innovation. The agreement, finalized under the Trump administration, is aimed at strengthening domestic chip capacity and reducing reliance on foreign supply chains, as Taiwan currently produces more than half of the world’s semiconductors.
In addition to direct investment, Taiwan will provide $250 billion in credit guarantees to support further expansion by participating firms. In parallel, the United States will increase investment in Taiwan’s semiconductor, defense, AI, telecommunications, and biotechnology sectors, though no funding total was disclosed.
The deal aligns with U.S. policy to reshore advanced chip manufacturing critical to AI systems, national security, and next-generation computing, following new tariffs on advanced AI chips and broader efforts to rebuild domestic semiconductor capacity.
