Washington | Jan 15 — GeokHub A new trade agreement between the United States and Taiwan is expected to deliver $500 billion in combined investment into America’s semiconductor industry, according to U.S. Commerce Secretary Howard Lutnick.
Speaking in a televised interview, Lutnick said the deal calls for $250 billion from Taiwanese companies and an additional $250 billion from Taiwan’s government, aimed at significantly expanding chip manufacturing capacity on U.S. soil.
Strengthening U.S. Chip Supply Chains
The agreement is part of Washington’s broader push to reduce dependence on overseas semiconductor production and reinforce domestic supply chains for critical technologies used in artificial intelligence, defense systems, automobiles, and consumer electronics.
U.S. officials have repeatedly warned that global chip shortages and geopolitical risks pose long-term threats to economic and national security, particularly given Asia’s dominant role in semiconductor fabrication.
Taiwan’s Central Role in Global Semiconductors
Taiwan is home to some of the world’s most advanced chipmakers and plays a pivotal role in the global electronics supply chain. The new investment framework deepens economic ties between Washington and Taipei while encouraging high-tech manufacturing and job creation in the United States.
While specific companies and project locations were not immediately disclosed, officials indicated the funds would support large-scale fabrication plants, advanced packaging facilities, and related infrastructure.
A Strategic Economic Partnership
The investment plan underscores growing U.S.–Taiwan cooperation at a time of rising competition in the global semiconductor industry. It also aligns with U.S. efforts to attract foreign capital to bolster advanced manufacturing under recent industrial policy initiatives.
Further details on implementation and timelines are expected to emerge in the coming months.
