Taiwan Commits $250B to US Semiconductor Manufacturing Under Trump Trade Deal

Taiwan is placing a massive $250 billion bet on American soil. In a major move to bolster domestic chip production, the Trump administration has secured a multibillion-dollar trade deal that'll see Taiwanese tech giants pour capital directly into the heart of the U.S. semiconductor industry.

Strengthening Domestic Chains: Taiwan's $250B Semiconductor Commitment

According to the U.S. Department of Commerce, the investment's focus spans beyond just silicon. It includes energy and AI production. Taiwan, which currently manufactures over 50% of the world's chips, will also provide an additional $250 billion in credit guarantees to support further investments from its tech enterprises.

In exchange, the U.S. has pledged to invest in Taiwan’s key sectors, including defense, telecommunications, and biotech. While the exact dollar amount of the U.S. contribution hasn't been disclosed, the deal marks a significant step in the administration's goal to bring manufacturing back stateside, where currently only 10% of chips are produced.

Tariffs and the Global Supply Chain Strategy

The announcement comes on the heels of new 25% tariffs imposed on advanced AI chips, such as Nvidia’s H200, headed to China. The administration's proclamation stated that dependence on foreign supply chains is a "significant economic and national security risk."