Overview
- The agreement sets a 15% U.S. tariff ceiling on Taiwanese goods tied to at least $250 billion in Taiwanese semiconductor investments in U.S. production capacity.
- Reports also describe $250 billion in credit guarantees to expand the U.S. chip supply chain, alongside a Commerce Department plan to develop semiconductor industrial parks.
- Taiwan’s prime minister hailed the terms as the best achieved by a trade-surplus partner with the U.S., noting preferential treatment for sectors such as autos, wood furniture, and certain aerospace components.
- TSMC signaled a central role, pledging about $165 billion for U.S. projects, boosting capital spending guidance, reporting a 35% quarterly profit rise, and accelerating Arizona fab construction as chip stocks rallied.
- Beijing formally condemned the pact on sovereignty grounds, and legal uncertainty lingers in the U.S. with a pending Supreme Court review of broader tariff authorities.