The U.S. and Taiwan have finalized a major trade agreement that includes a commitment from Taiwan to invest at least $250 billion in the American semiconductor, energy, and artificial intelligence sectors. The deal, announced on January 15, 2026, is aimed at strengthening the domestic U.S. chip supply chain and reducing reliance on foreign manufacturing.
In addition to the direct investment, Taiwan will provide $250 billion in credit guarantees to facilitate further investment from Taiwanese companies. As part of the agreement, the U.S. will lower its reciprocal tariff rate on Taiwanese goods to a maximum of 15%. Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest chipmaker, is expected to be a key player in the expansion of U.S. production, with plans to expand its facilities in Arizona.