Overview
- Taiwan’s trade office said the two sides have reached a broad consensus and are setting a timetable to conclude talks, with a Reuters source indicating an announcement could come before the end of January.
- The developing agreement is expected to lower the U.S. tariff rate on Taiwanese goods to about 15% from roughly 20%, consistent with Taiwan’s stated goal and recent media reports.
- Reports from U.S. media say TSMC would commit to at least five additional fabs in Arizona under the deal, while the company declined to confirm any new investments beyond its previously pledged $165 billion.
- TSMC has purchased 900 acres of Arizona state trust land near its North Phoenix complex for nearly $200 million, a move local officials say will drive jobs and prompt transportation and infrastructure upgrades.
- The talks fit a broader U.S. strategy of trading tariff reductions for allied investment tied to national security priorities, similar to arrangements reached with Japan and South Korea in 2025.