US and Taiwan Reach Deal on Tariffs, Investments, Boosting Semiconductor Industry in the US
The US Commerce Department announced a significant deal with Taiwan aimed at reducing tariffs on Taiwanese goods and boosting investments in the semiconductor industry. Under the agreement, tariffs on goods from Taiwan will be lowered to 15%, down from the current reciprocal rate of 20%. Sector-specific tariffs on auto parts, timber, lumber, and wood products will also be capped at 15%.
The deal is a major win for Taiwanese chipmakers, particularly TSMC, which is the world's largest contract maker of microchips used in various high-tech applications. The company plans to make direct investments totaling $250 billion in the US to build and expand capacity in areas such as advanced semiconductors and artificial intelligence.
Taiwanese companies will also receive credit guarantees of at least $250 billion to facilitate additional investment in the American semiconductor supply chain. This move is seen as a strategic partnership between the two nations, with Taiwan's Vice-Premier Cheng Li-chiun describing it as a "win-win" deal that would encourage American investment in Taiwan.
The investment plan was led by Taiwanese companies and will see hundreds of acres of land purchased adjacent to TSMC's property in Arizona. The company has expressed interest in expanding its operations in the US, with Commerce Secretary Howard Lutnick stating that he is allowing TSMC to proceed with its plans.
Under the agreement, Taiwanese firms building new US chip operations will be treated more favorably when it comes to future duties on semiconductors. The objective is to bring 40% of Taiwan's entire supply chain and production into the US, aiming to make the country self-sufficient in semiconductor capacity-building.
The deal comes after months of negotiations and follows Taiwan's President Lai Ching-te's pledge to boost investments in the US and increase defense spending. Taiwan is a major player in the global manufacturing of semiconductor chips, which are critical to the production of various electronic devices.
While the deal has been welcomed by Taiwanese companies, some have expressed concerns about absorbing tariffs for US customers. As Chris Wu, a sales director at Litz Hitech Corp, noted, "there is no way we can absorb the tariff" for US customers given the company's single-digit profit margins.
The agreement marks an important step in strengthening ties between the US and Taiwan, with both nations aiming to increase cooperation in the tech sector.
The US Commerce Department announced a significant deal with Taiwan aimed at reducing tariffs on Taiwanese goods and boosting investments in the semiconductor industry. Under the agreement, tariffs on goods from Taiwan will be lowered to 15%, down from the current reciprocal rate of 20%. Sector-specific tariffs on auto parts, timber, lumber, and wood products will also be capped at 15%.
The deal is a major win for Taiwanese chipmakers, particularly TSMC, which is the world's largest contract maker of microchips used in various high-tech applications. The company plans to make direct investments totaling $250 billion in the US to build and expand capacity in areas such as advanced semiconductors and artificial intelligence.
Taiwanese companies will also receive credit guarantees of at least $250 billion to facilitate additional investment in the American semiconductor supply chain. This move is seen as a strategic partnership between the two nations, with Taiwan's Vice-Premier Cheng Li-chiun describing it as a "win-win" deal that would encourage American investment in Taiwan.
The investment plan was led by Taiwanese companies and will see hundreds of acres of land purchased adjacent to TSMC's property in Arizona. The company has expressed interest in expanding its operations in the US, with Commerce Secretary Howard Lutnick stating that he is allowing TSMC to proceed with its plans.
Under the agreement, Taiwanese firms building new US chip operations will be treated more favorably when it comes to future duties on semiconductors. The objective is to bring 40% of Taiwan's entire supply chain and production into the US, aiming to make the country self-sufficient in semiconductor capacity-building.
The deal comes after months of negotiations and follows Taiwan's President Lai Ching-te's pledge to boost investments in the US and increase defense spending. Taiwan is a major player in the global manufacturing of semiconductor chips, which are critical to the production of various electronic devices.
While the deal has been welcomed by Taiwanese companies, some have expressed concerns about absorbing tariffs for US customers. As Chris Wu, a sales director at Litz Hitech Corp, noted, "there is no way we can absorb the tariff" for US customers given the company's single-digit profit margins.
The agreement marks an important step in strengthening ties between the US and Taiwan, with both nations aiming to increase cooperation in the tech sector.
so basically they're gonna lower tariffs on taiwanese goods by 5% now which is kinda big deal for companies like tsmc who make microchips used in all sorts of tech stuff 
idk how much money it'll make but tsmc plans to invest $250 billion in the us thats crazy 
plus they're gettin credit guarantees of at least $250b that's insane 
I'm so glad they finally reached a deal on tariffs, it feels like forever since we've had some sense of stability 
. Reminds me of when we used to get those big discounts at Circuit City 
back in the day, haha! Now, $250 billion is a pretty penny 
. Can you imagine having to explain to your grandma what a semiconductor chip is? 
It's just another area where our tech industry can benefit from some good old-fashioned American-Israeli cooperation (I'm so used to talking about the '90s and '00s, I keep thinking of that!)...
So this deal is like a big helping hand from the US to Taiwanese companies, especially TSMC. $250 billion investment sounds crazy huge! 
Can Taiwanese companies really absorb those tariffs? It's not just about business, it's also a strategic partnership between two nations, so let's see how this plays out... 
. $250 billion investment plan? That's crazy talk 
. But what about those single-digit profit margins, though? I feel bad for companies like Litz Hitech Corp that have to swallow the tariff costs 
. Still, it's all about diversifying and growing their business, right? And hey, who doesn't love a good win-win deal? 
. It'll be awesome to see more Taiwanese companies setting up shop here, especially when it comes to advanced semiconductors and AI - that stuff's the future, fam 
. The US is always looking for ways to boost its tech sector, and this deal is definitely a win-win 
. Can't wait to see how this plays out in the coming years! 
china is trying to take over semiconductors but now taiwan can keep up with its own investments 
I need to see some actual numbers and timelines on this one. What's the total cost of building these chip operations and who's footing the bill? 
plus, they got credit guarantees which is like, super helpful 4 getting funds 2 invest in us chip ops. china can't compete w/this deal 
but seriously, $250 billion investment from tsmc? that's a whole lotta cash 
And what about the environmental impact of all these new investments and production? Are we just going to keep digging ourselves into debt...I mean, debt in the earth? 
. Taiwanese companies are getting a sweet deal with lower tariffs and credit guarantees, but what about the US workers who'll be competing with cheaper labor? 
. With companies like TSMC leading the way, we can expect even more advanced technology and products that will shape their lives and the world they'll inherit 
! 
... i mean, who wouldn't want to give up a 5% tariff advantage for $250 billion in investments? that's some serious sweet tea and biscuits money 
tsmc must be thrilled to be getting all this love and having its "single-digit profit margins" suddenly become relevant 
The fact that this deal could bring 40% of Taiwan's entire supply chain into the US is mind-blowing. We're talking about some serious game-changer stuff here... 
Still, this deal is a huge win for both nations and I'm excited to see what other collaborations come out of this partnership!