The Trump administration signed a notable multi-billion-dollar trade deal with Taiwan that’s designed to help the United States boost domestic semiconductor manufacturing.
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 “production and innovation,” according to a press release. Taiwan currently produces more than half of the world’s semiconductors.
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.
In return, the U.S. will invest in Taiwan’s semiconductor, defense, AI, telecommunications and biotech industries. The press release did not specify a specific dollar amount tied to the U.S.’s side of the deal.
The news comes the day after the Trump administration published a proclamation that reiterated the country’s 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.
“This dependence on foreign supply chains is a significant economic and national security risk,” the proclamation stated. “Given 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’ industrial and military capabilities.”
The proclamation, which announced 25% of tariffs on some advanced AI chips, also stated that once trade talks with other countries — like this deal with Taiwan — are complete, there would be additional semiconductor tariffs.
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