The U.S. and Taiwan just settled on a new trade deal that will see Washington cut tariffs on the island from 20% to 15%. In exchange for this, Taipei committed at least $250 billion in direct investments in the U.S. on advanced semiconductor manufacturing, energy production and distribution, and artificial intelligence operations. Aside from this, the Taiwanese government also committed an additional $250 billion in credit guarantees for its companies investing in American semiconductor operations. This brings the total amount in the trade deal to $500 billion, according to Bloomberg, but already includes the $100 billion U.S. investment that TSMC announced in March 2025.
TSMC is reportedly looking to further expand its U.S. presence, with plans to build four more fabs on top of the planned, under-construction, and existing facilities in Arizona. “They just bought hundreds of acres adjacent to their property,” U.S. Commerce Sec. Howard Lutnick said in an interview with CNBC. “I’ll let them go through with their board and give them time.”
