Overview
- Beijing’s Taiwan Affairs Office branded the agreement a “sellout contract” that would hollow out Taiwan’s industry and “drain” the island’s economy, amplifying its political denunciations.
- Under the framework, U.S. tariffs on Taiwanese goods drop to 15% as Taiwan’s tech firms commit at least $250 billion in new U.S. investment and authorities pledge $250 billion in credit guarantees.
- Commerce Secretary Howard Lutnick said the U.S. aims to relocate 40% of Taiwan’s semiconductor supply chain to American soil.
- TSMC has pledged about $165 billion for U.S. fabrication and R&D, with reports indicating plans for several additional plants.
- Analysts caution the U.S. will still rely on Taiwan’s most advanced chips because Taipei continues to keep its cutting‑edge technology at home.