The United States and Taiwan are advancing a strategic trade negotiation focused on semiconductor security, investment, and workforce development. At the center of the talks is TSMC’s landmark $165 billion US investment, the largest foreign direct investment in American history.
Taiwan dominates nearly half of the global semiconductor market, yet the US faces a shortage of skilled workers able to operate advanced chip-making facilities. The proposed agreement seeks to bridge this gap by pairing Taiwanese capital with structured skills-transfer programs for American workers.
A key agenda point is the 20% tariff imposed on Taiwanese imports since August 2025. Taiwan hopes to see these duties eased to restore efficient trade flows, while both sides explore deeper technology collaboration.
The US aims to strengthen domestic manufacturing capacity by enabling Taiwanese experts to train American talent in next-generation fabrication processes. This would accelerate the growth of a sustainable semiconductor workforce.
For Taiwan, reduced tariffs and greater investment incentives would support seamless expansion of its chip operations on US soil, bolstering its global manufacturing footprint.
If finalized, the deal would blend economic policy with strategic industrial planning, offering mutual gains in competitiveness and security.
Ultimately, the negotiation may serve as a blueprint for future high-tech trade agreements that balance investment, skills, and supply chain resilience.
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