Overview
- The agreement commits Taiwanese semiconductor firms to invest at least $250 billion in U.S. production and provide $250 billion in credit guarantees to reinforce the domestic chip ecosystem.
- U.S. officials set an objective to relocate about 40% of Taiwan’s semiconductor supply chain to American soil to meet national security and AI infrastructure needs.
- Tariffs on many Taiwanese exports to the U.S. are set at 15%, with zero duties for items such as generic medicines, active pharmaceutical ingredients, certain unavailable raw materials, and aviation components.
- Washington also imposed a 25% tariff on semiconductors that transit the United States for re‑export, with more favorable tariff treatment for Taiwanese manufacturers that invest in U.S. facilities.
- China formally objected and urged adherence to the one‑China principle, while Taipei’s executive backed the deal and lawmakers in an opposition‑led parliament must still vote on it.