The United States says it has reached a trade deal with Taiwan. The pact cuts tariffs on Taiwanese goods in exchange for massive investments on American soil. The main aim is to boost chip production.
The Commerce Department stated on Thursday that the US will lower the tariff rate for Taiwanese imports to no more than 15 percent.
Aircraft components, generic pharmaceuticals and some other items will face no levies.
Commerce Secretary Howard Lutnick announced plans in an interview with CNBC TV to build giant semiconductor industrial parks in America and bring semiconductors home.
He said the objective is to bring 40 percent of Taiwan’s entire supply chain and production to the US.
Under the deal, Taiwanese chipmakers and other tech firms are to make new and direct investments totaling at least 250 billion dollars in the US.
That’s to expand production and innovation capacity of advanced chips, energy and AI. Taiwan’s authorities will provide credit guarantees of at least 250 billion dollars.