US-Taiwan $500 Billion Semiconductor Trade Agreement

The United States and Taiwan announced a landmark trade agreement on Thursday, committing to a $500 billion package aimed at bolstering American semiconductor manufacturing and easing tariffs on Taiwanese imports. The deal, finalized after months of negotiations, seeks to revive U.S. leadership in critical technologies by encouraging Taiwanese firms to expand operations on American soil.

Under the agreement, Taiwan pledged $250 billion in direct investments to develop advanced facilities for semiconductors, energy, and artificial intelligence in the United States. An additional $250 billion in credit guarantees will support broader expansion of the semiconductor supply chain, including related components and infrastructure. Officials from both nations described the pact as a step toward establishing U.S.-based industrial parks to foster innovation and manufacturing. The initiative targets reversing the decline in America's global share of semiconductor fabrication, which fell from 37 percent in 1990 to less than 10 percent in 2024 due to decades of offshoring.

The tariff provisions cap U.S. reciprocal duties on Taiwanese goods at 15 percent, down from the previous 20 percent...