"Under the deal announced by the U.S. Department of Commerce on Thursday, Taiwanese semiconductor and tech companies have agreed to make direct investments of $250 billion into the U.S. semiconductor industry. These investments will span across semiconductors, energy and AI "production and innovation," according to a press release. Taiwan will also supply an additional $250 billion in credit guarantees for additional investments from these semiconductors and tech enterprises, according to the commerce department. The time period of these investments is unclear."
""This dependence on foreign supply chains is a significant economic and national security risk," the proclamation stated. "Given the foundational role that semiconductors play in the modern economy and national defense, a disruption of import-reliant supply chains could strain the United States' industrial and military capabilities." The proclamation, which announced 25% of tariffs on some advanced AI chips, also stated that once trade talks with other countries - like this deal with Taiwan - are complete, there would be additional semiconductor tariffs."
The Trump administration completed a multi-billion-dollar trade deal with Taiwan to bolster U.S. semiconductor manufacturing. Taiwanese semiconductor and tech companies committed $250 billion in direct U.S. investments and an additional $250 billion in credit guarantees for further investments. Investment areas include semiconductors, energy, and AI production and innovation. Taiwan produces more than half of the world's semiconductors. The United States agreed to invest in Taiwan's semiconductor, defense, AI, telecommunications, and biotech industries, though no U.S. dollar figure was specified. A presidential proclamation emphasized the national security risks of foreign supply dependence and imposed 25% tariffs on some advanced AI chips.
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