US–Taiwan Semiconductor Pact Signals Massive Investment

(MENAFN) The United States and Taiwan finalized a semiconductor-related accord on Thursday, as confirmed by the American Commerce Department. The department stated that the arrangement is expected to draw substantial Taiwanese capital into the US market while also reducing tariff levels applied to Taiwanese exports.

"This unprecedented commitment will strengthen US economic resilience, create high-paying jobs, and bolster national security," it said.

Under the agreement, Taiwanese firms operating in the semiconductor and broader technology sectors are set to inject a minimum of $250 billion in direct funding. These investments will be used to construct and enlarge advanced semiconductor facilities, as well as energy and artificial intelligence manufacturing and innovation capabilities across the United States.

In addition, Taiwan will extend credit guarantees totaling at least $250 billion. These guarantees are designed to encourage further investment by Taiwanese companies and to support the creation and scaling of a comprehensive semiconductor supply chain and industrial ecosystem within the US.

"The United States and Taiwan will establish world-class industrial parks in the United States to strengthen America’s industrial infrastructure and position the United States as the global center for next-generation technology, advanced manufacturing, and innovation," it added.

As part of the deal, the reciprocal tariff rate imposed by the US on Taiwanese products will not exceed 15%. Likewise, Section 232 duties levied by the US on Taiwanese automotive components, timber, lumber, and wood-based derivative goods will be capped at the same 15% level.

Furthermore, the United States will introduce a zero-percent reciprocal tariff on generic medicines, their active ingredients, aircraft parts, and certain natural resources that are not readily available domestically.

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