Taiwan to invest $250B in US semiconductor manufacturing

The Trump administration signed a landmark multi-billion dollar trade deal with Taiwan designed to help the United States boost domestic semiconductor manufacturing.

In a deal announced by the US Department of Commerce on Thursday, Taiwanese semiconductor and technology companies have agreed to make direct investments of $250 billion into the US semiconductor industry. The investment will go through semiconductors, energy and AI “production and innovation”, according to a press release. Taiwan is now producing more than half of the semiconductor world.

Taiwan will also provide an additional $250 billion in credit guarantees for additional investment from semiconductor and technology companies, according to the commerce department. The time period of the investment is unclear.

In return, the US will invest in Taiwan’s semiconductor, defense, AI, telecommunications and biotech industries. The press release did not specify the specific dollar amount associated with the U.S. deal.

The news comes a day after the Trump administration issued a proclamation stating the state’s goal to bring semiconductor manufacturing back to the United States and admitting the process will take time because only 10% of semiconductors are produced in the state.

“This dependence on foreign supply chains is a significant economic and national security risk,” the proclamation said. “Given the fundamental role that semiconductors play in the modern economy and national defense, disruption of import-dependent supply chains could undermine the industrial and military capabilities of the United States.”

Proclamation, which declares 25% rate on some advanced AI chipsalso stated that if trade talks with other countries – like the deal with Taiwan – are concluded, there will be additional semiconductor tariffs.