CPKC investing US$800 million in American manufacturing with Tier 4 locomotives

CALGARY, AB, Jan. 21, 2026 /CNW/ – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) this year is continuing the renewal of its locomotive fleet with the world’s two leading locomotive manufactures as part of an ongoing multi-year US$800 million investment in American industry.

Tier 4 locomotive (CNW Group/CPKC)

Having completed the purchase of 100 Wabtec Tier 4 locomotives built in Texas in 2025, today CPKC said it will add 30 additional Tier 4 locomotives from Progress Rail in 2026 to be built in Indiana. This year, CPKC also expects delivery of 70 more Texas-built Tier 4 units from Wabtec.

“Our purchase of additional new Tier 4 locomotives, proudly made in the USA, continues CPKC’s commitment to renew our locomotive fleet through a more than US$800 million investment in American manufacturing capacity,” said Mark Redd, CPKC Executive Vice President and Chief Operating Officer. “We are investing in our road locomotive fleet for growth and to maintain our industry-leading service for our customers and the North American economy, powered by a fleet with improved reliability and fuel efficiency.”

In January, CPKC expects to receive the first two of 70 Wabtec Evolution Series ET44AC Tier 4 locomotives being built this year for CPKC at the company’s manufacturing facility in Dallas, Texas.

In the second half of 2026, CPKC expects to take delivery of 30 new EMD® SD70ACe-T4 Tier 4 freight locomotives to be manufactured at Progress Rail’s facility in Muncie, Indiana. These locomotives are part of an order for 65 new Tier 4 locomotives to be built by Progress Rail.

These locomotive investments continue CPKC’s locomotive renewal program and are part of CPKC’s previously announced multi-year capital plan.

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

CPKC Logo (CNW Group/CPKC) Cision

View original content to download multimedia:https://www.prnewswire.com/news-releases/cpkc-investing-us800-million-in-american-manufacturing-with-tier-4-locomotives-302667204.html

Source link

EOS invests $3m in United States manufacturing and logistics expansion

EOS has invested 3 million USD into the expansion of its US manufacturing and logistics capacity.

The company has consolidated its North American warehouse and logistics capability at its Pflugerville, Texas, campus into a new 40,000 square foot facility in Belton, Texas, which has enabled the manufacturing space in Pflugerville to be increased.

EOS says the reconfiguration of existing facilities and the opening of the new warehouse demonstrate its commitment to strengthening its U.S. manufacturing capacity. The assembly of its EOS M 290-1, EOS M 290-2, and EOS M 400-4 systems will receive a boost, while EOS has also created more space for a dedicated powder handling area and an in-house machine shop. It is expected that EOS will now be better equipped to meet increasing customer demand and reduce delivery times. The company has also created ten new jobs at the Pflugerville production site, including operations, quality assurance, engineering, and machine commissioning functions.

“Our Texas expansion enables us to scale North American metal AM assembly with both precision and consistency,” said Kent Firestone, SVP of Operations, EOS North America. “From optimising our production areas to onboarding new team members, every step has been carefully designed to accelerate turnaround times while maintaining the quality and reliability our customers expect from EOS.”   

“This expansion demonstrates our continued commitment to support the resurgence of American manufacturing,” added Glynn Fletcher, president of EOS North America. “This manufacturing facility is not just an investment in our own infrastructure; it is also about standing shoulder-to-shoulder with the U.S. manufacturing community to provide products and services for a superior customer experience. It demonstrates our dedication to the growing U.S. markets where our technology is in greatest demand. We fully understand the criticality that AM plays in the future of domestic manufacturing, and this expansion ensures EOS will continue to play a leading role for years to come.” 

Source link

Vaccines Show the Way Forward for U.S. Manufacturing

By Phyllis Arthur

The push to bring manufacturing back to America sits at the top of President Donald Trump’s agenda. He has vowed to revitalize U.S. industry.

It’s the right goal, but the government must realize it already has a proven model to follow: vaccines. These lifesaving medical tools represent our clearest example of advanced manufacturing, on American soil, done right.

In the early 2000s, as pandemic risks like H1N1 and SARS became apparent, U.S. policymakers pressed for an “always-on” vaccine capability – infrastructure ready to scale at a moment’s notice. That has paid off decisively. We’ve since seen more than 20 years of vaccine manufacturer investment in our workforce, regulatory science and a stable market.

And yet, the Department of Health and Human Services is now moving in the opposite direction. Instead of holding vaccine manufacturing up as the blueprint for industrial renewal, HHS’ recent decisions to curtail mRNA vaccine development and cancel funding have shaken confidence in the industry – and risk undermining the president’s agenda.

Without even being asked, vaccine makers are delivering on the administration’s goals of ensuring that the U.S. leads the world in manufacturing. Moderna manufactures vaccines at its in-house production facility in Norwood, Massachusetts. CSL Seqirus operates a large manufacturing site in Holly Springs, North Carolina – one of the largest producers of cell-based flu vaccines and a cornerstone of national pandemic preparedness.

Meanwhile, Merck cut the ribbon on a $1 billion, state-of-the-art plant in Durham, North Carolina – designed to accelerate U.S. vaccine manufacturing. Sanofi has pledged $20 billion in U.S. investments through 2030, which includes bolstering research and domestic production, on top of their existing expansive manufacturing facility in Swiftwater, Pennsylvania. And in late 2024, GSK announced an $800 million investment in its vaccines manufacturing facility in Marietta, Pennsylvania.

These investments aren’t just numbers on a balance sheet – they translate directly into stronger safeguards for Americans’ well-being.

Vaccines don’t just save lives – they strengthen the economy. Every dollar invested in adult vaccination programs can generate as much as $19 in returns.

And the stakes are strategic: A robust domestic vaccine industry ensures a steady supply of lifesaving medicines in times of crisis. By keeping production rooted in the United States, we can better withstand future pandemics, prevent global supply chain disruptions and reduce our dependence on foreign governments. In today’s world, where health threats and geopolitics are increasingly intertwined, vaccines are a strategic necessity.

Put plainly: Vaccine manufacturing is the model of what a revitalized U.S. industrial base should look like. Yet recent actions are eroding confidence in this proven foundation. HHS recently canceled more than 20 federally funded research projects – pulling $500 million out of work that was underway to shore up defenses against respiratory viruses like COVID-19 and the flu. Withdrawing support for this cutting-edge medical technology will choke off future breakthroughs and undercut America’s public health readiness.

HHS also dismissed every member of the government’s long-standing vaccine advisory panel, replacing them midstream with handpicked candidates – some with open histories of vaccine skepticism. And the agency has muddled federal guidance, with officials insisting certain vaccines will be widely available this winter – yet approval is restricted to only certain groups, leaving states scrambling and families confused.

This is the opposite of what American manufacturing needs right now.

Getting back on track will require restoring the canceled vaccine projects, ensuring a science-based advisory process and establishing consistent national guidance that provides companies with the certainty they need to continue investing in U.S. capacity.

Phyllis Arthur is the executive vice president & head of healthcare policy and programs at the Biotechnology Innovation Organization (BIO). This article originally appeared in the U.S. News & World Report.

Source link

Genentech More than Doubles Investment in Holly Springs, North Carolina Manufacturing Facility

• Genentech will more than double the initial investment in a state-of-the-art biomanufacturing facility in Holly Springs to approximately $2 billion, bolstering Roche and Genentech’s $50 billion investment in U.S. manufacturing and R&D
• The expansion will increase production volume and scale manufacturing capacity within the facility, where construction began in August 2025
• The Holly Springs investment is expected to support more than 2,000 jobs, including 500+ high-wage manufacturing and 1,500+ construction jobs

SOUTH SAN FRANCISCO, Calif.–(BUSINESS WIRE)–Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY), today announced an expansion of its initial investment in a new Holly Springs, North Carolina manufacturing facility. The increased investment will more than double the total commitment for the company’s first-ever East Coast manufacturing facility to approximately $2 billion. The expansion builds on the company’s May 2025 investment announcement, as well as the project’s August 2025 groundbreaking, and reflects Genentech’s continued confidence in the region’s community, workforce, and long-term growth potential.

The expanded investment allows Genentech to build out additional production capacity and significantly increase the facility’s output. Set to be operational by 2029, the state-of-the-art facility will produce next-generation treatments for metabolic conditions, such as obesity. By leveraging advanced biomanufacturing, automation, and digital tools, the investment will boost efficiency and sustainability while significantly expanding Genentech’s U.S.-based supply chain.

The expanded investment is expected to add an additional 100 new jobs to the North Carolina economy, with the project supporting more than 500 high-wage manufacturing jobs and 1,500 construction jobs, reinforcing Genentech’s role as a significant economic driver.

The company decided to increase its investment in Holly Springs, a growing hub for biopharmaceutical innovation, because of its highly skilled local workforce, strong academic institutions, and proximity to other leading life science companies in the Raleigh-Durham area.

This expansion supports Roche and Genentech’s broader $50 billion commitment to U.S. manufacturing, and reflects Genentech’s shared goal with the U.S. administration to strengthen domestic production and innovation. Roche and Genentech’s current U.S. footprint includes 13 manufacturing and 15 R&D sites across the company’s Pharmaceutical and Diagnostics Divisions and 25,000 employees in 24 sites across eight U.S. states.

Genentech CEO Ashley Magargee:

“We are excited to further expand our investment in our state-of-the-art manufacturing facility in Holly Springs, North Carolina. This expansion reflects our long-term commitment to the United States and communities like Holly Springs that offer the kind of world-class biotech talent, top research institutions, and strong infrastructure that make innovation possible. This additional investment will create more high-quality jobs, strengthen local partnerships, and ensure a resilient supply of medicines for years to come, allowing us to bring life-changing medicines to patients faster and more reliably.”

“This investment also aligns with our plan to expand pharmaceutical manufacturing in the U.S., and we appreciate the support of federal, state and local leaders to make this a reality. We are especially grateful for the partnership and support of North Carolina Governor Josh Stein and Holly Springs Mayor Mike Kondratick, alongside the Holly Springs Town Council, whose collaboration has been essential to advancing this project.”

Josh Stein, Governor of North Carolina:

“Genentech’s increased investment in Holly Springs creates durable jobs and strengthens our life sciences sector,” said North Carolina Governor Josh Stein. “This expansion reinforces North Carolina’s role in supporting innovation, workforce development, and long-term economic opportunity.”

Lee Lilley, North Carolina Secretary of Commerce:

“North Carolina is the best state for business and a global life sciences trailblazer,” said North Carolina Commerce Secretary Lee Lilley. “Genentech’s expansion underscores the strength of the partnerships, both statewide and locally, and our nationally recognized workforce and research institutions that propel our thriving biotechnology hub forward.”

Mike Kondratick, Mayor of Holly Springs:

“Genentech’s continued investment is one of the most significant initiatives we have advanced since I took office, and it speaks to Holly Springs’ strength as a place where leading companies choose to grow. This expansion underscores Genentech’s long-term commitment here and the importance of close collaboration with our Town, from local services and infrastructure planning to partnering on workforce and education initiatives. I look forward to continuing our partnership with Genentech to strengthen our thriving community’s future.”

About Genentech

Founded 50 years ago, Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes medicines to treat patients with serious and life-threatening medical conditions. The company, a member of the Roche Group, has headquarters in South San Francisco, California. For additional information about the company, please visit http://www.gene.com.

Contacts

Genentech US Media Relations

Dean Mastrojohn
Phone: +1 650 467 6800

e-mail: [email protected]

Madaline Donnelly
Phone: +1 650 467 6800

e-mail: [email protected]

Source link

Morph Systems, a defense industry and U.S. manufacturing data integration platform developer, announ..

Defense & U.S. Manufacturing Data Platform
Palantir Foundry Technology Utilization

사진 확대 A case of Morph Systems’ ontology construction that can identify relationships between unstructured data [Morph Systems]

Morph Systems, a defense industry and U.S. manufacturing data integration platform developer, announced on the 20th that it has attracted pre-seed investment from Mashup Ventures and 500 Global.

Morph Systems is an enterprise AI company that designs supply chain data and workflow for defense and U.S. manufacturing companies that are pushing for utilization advancement after the introduction of Palantir. Establish an ontology model that systematically defines data relationships according to the customer’s work context, and design data flows so that ERP (company resource management), logistics, settlement, and operation data can lead to actual decision-making and execution.

In addition, for organizations in the early stages of Palantir introduction, data and work structure design is also being carried out considering future expansion. Customers can have a data processing structure and a high-performance computing environment that can operate stably even if the supply chain expands. The technological excellence of these morph systems is advantageous not only at the manufacturing site, but also in the military and defense industry environment that requires large-scale material movement and strict traceability.

CEO Park Min-gyu, a graduate of Seoul National University’s Department of Aerospace Engineering, has published a number of international academic papers in the field of reinforcement learning, served as an AI researcher at the Korea Military Academy, and conducted defense and public AI projects. While working on a Palantir Foundry-based consulting project, he discovered the demand for data integration in the manufacturing and defense industries and decided to start a business. Co-founder Koo Ha-rim is a graduate of the Department of Mechanical Engineering at the National University of Singapore and has two startup experiences and is in charge of data integration and AI system implementation directly in the field.

Morph Systems expects 40% of its sales to come from U.S. customers since its first year, and to expand to more than 80% this year. Recently, in recognition of the excellence of data integration technology that can handle large-scale supply chains stably, it was selected for the TIPS program organized by the Ministry of SMEs and Startups and secured up to 500 million won in R&D funds. The selection of this tip was made on the recommendation of Mashup Ventures.

“After attracting this investment, we plan to implement a large-scale ontology-based computational and decision-making operation system centered on the U.S. market,” said Park Min-gyu, CEO of Morph Systems. “The ultimate goal is to expand to Neo-Cloud infrastructure and software layers optimized for specific industries and workloads based on our experience in operating field-oriented AI systems.”

Lee Seung-guk, a Mashup Ventures partner who led the investment, said, “The demand for data integration and decision-making automation is increasing rapidly in the process of re-industrialization and supply chain reorganization in the United States. Morph Systems is a team that solves core problems in the manufacturing and defense industry based on Palantir Foundry-based data integration technology and field-oriented experience, and it is expected to grow quickly in the U.S. market.”

Source link

FBR secures conditional order for Mantis welding robot to support US manufacturing

Robotic technology company FBR Limited has received a binding conditional purchase order valued at AUD 990,000 for its Mantis welding robot, in a deal aimed at supporting manufacturing operations in the United States.

In a news release, the company said the order has been placed by State Machinery & Equipment Sales, a Louisiana-based dealer for heavy equipment brands, which intends to use the Mantis robot in the manufacture of barges at its facility on the Mississippi River. 

FBR stated delivery is anticipated in the second half of calendar year 2026.

According to FBR, the purchase order is conditional on the successful completion of a Factory Acceptance Test to be conducted at the company’s Western Australian facility. 

The test will involve Mantis welding a sub-assembly of a hopper barge, with welding speed and quality independently assessed through non-destructive testing in line with AWS D1.1 standards.

Once the Factory Acceptance Test is completed to specification, AUD 450,000 of the contract value will become payable, with a further AUD 450,000 due on delivery and the remaining AUD 90,000 payable three months after delivery. 

The contract also includes installation and training services to be provided by FBR in Louisiana.

FBR chief executive officer Mark Pivac said the order reflects early interest in the technology despite it still being in the prototyping phase. “We are very pleased to have secured a binding conditional purchase order for Mantis while we’re still in the prototyping phase, which is indicative of the strong demand we’ve had for the product already,” he said. 

He added that the company looks forward to demonstrating the system’s welding performance during the acceptance testing process.

State Machinery president Ed Renton said the company sees the technology as an opportunity to enhance its manufacturing capability. “As the foremost dealer of heavy equipment in Louisiana, State Machinery has a lot of experience in manufacturing and construction equipment, and we are very excited to get our hands on the first Mantis® in the world,” he said.

“We are pleased to be working with the team to bring their robotic welding technology to the United States to boost our manufacturing capability.”

The content of this article is based on information supplied by FBR Limited. For more information, please refer to the official company announcement and communications from FBR. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.

Source link

NOVEON MAGNETICS COMPLETES $215 MILLION SERIES C TO EXPAND U.S. RARE EARTH MAGNET MANUFACTURING CAPACITY

Financing Round Led by One Investment Management Supports Expansion of Domestic Rare Earth Magnet Production and Facilitates Secondary Share Sale

SAN MARCOS, Texas, Jan. 19, 2026 /PRNewswire/ — Noveon Magnetics, Inc. (Noveon), a leading U.S. manufacturer of sintered rare earth permanent magnets, today announced the close of a $215 million Series C financing led by a $200 million investment from One Investment Management (OneIM). The capital will fuel significant growth of Noveon’s domestic rare earth magnet manufacturing capacity as demand accelerates across key sectors — including automotive, defense, AI, energy, and advanced manufacturing — and as the need to reshore critical U.S. supply chains becomes increasingly important. In addition, today’s Series C financing facilitates secondary sales by certain existing shareholders.

As part of the transaction, OneIM will appoint two new Series C board members.

“This financing marks a pivotal step in scaling Noveon’s production capabilities to meet rapidly growing customer demand,” said Scott Dunn, CEO of Noveon. “With the support of OneIM, we are accelerating deliveries of high-performance rare earth magnets produced entirely in the United States — scaling capacity, capability, and strengthening supply chain resiliency for our customers.”

Noveon was the first company to reshore full-scale production of sintered rare earth magnets to the United States. This investment positions Noveon to accelerate its growth trajectory by expanding capacity beyond 2,000 tons per year, enabling the company to support existing commercial partners and capture growing demand from critical industries requiring high-performance, high-quality magnetic materials.

Rare earth permanent magnets are essential to automotive systems, defense platforms, AI and data storage technologies, robotics, and advanced manufacturing applications. Noveon’s American manufacturing platform directly addresses long-standing supply chain vulnerabilities, delivering reliable, high-performance magnet solutions.

“Noveon is uniquely positioned to lead the reshoring of the rare earth magnet industry at a time when supply chain security and domestic manufacturing capacity are national priorities,” said Rajeev Misra, CEO and Co-Founder of OneIM. “The company has assembled exceptional talent and built the technical skills, operational expertise, and execution discipline required to scale U.S. rare earth magnet manufacturing. We are proud to support Noveon’s next phase of growth and I look forward to supporting the company as it builds capacity that can truly meet the moment.”

Over the last 12 months, Noveon has achieved several significant milestones, including entering into multi-year supply agreements with General Motors and ABB, forming strategic partnerships with Lynas and Solvay to help create a more resilient supply chain, and entering into a closed-loop magnet recycling initiative with LG Electronics and Kangwon Energy. These milestones have strengthened Noveon’s position as a leader in sintered NdFeB magnets and have laid the groundwork for offering a fully domestic, vertically integrated solution for rare earth magnets.

“I am incredibly proud of what our team has accomplished over the past year,” added Scott Dunn. “We look forward to building upon our strong momentum with support from our new and existing partners to deliver on our mission to reshore critical magnet production to the United States.”

Goldman Sachs & Co. LLC served as exclusive financial advisor to Noveon. 

About Noveon
Noveon is the only operational manufacturer of sintered NdFeB rare earth magnets in the United States and the first to reshore them in over 20 years. Through its proprietary EcoFlux™ technology, Noveon delivers a fully domestic, closed-loop magnet manufacturing capability that maximizes resource efficiency, allows for the beneficial use of recycled materials, and produces superior high-performance finished magnets that meet the full range of commercial and industrial demand. Noveon’s products provide a secure and resilient supply chain solution for critical applications including electric vehicles, wind turbines, robotics, motors, pumps, data storage, consumer electronics, and defense systems. Learn more at https://noveon.co/.

About OneIM
OneIM is a global alternative investment manager that invests across the capital structure, in a range of asset classes, industries and geographies. The firm applies a flexible investment approach and focuses on creating long-term value by working with exceptional partners and management teams. OneIM is sector agnostic and focuses on situations where it can leverage its cross-asset class expertise and capital base to achieve differentiated risk-adjusted returns. The firm was founded in 2022 and currently manages approximately $10 billion in assets. The team operates from offices in Abu Dhabi, London, Tokyo and New York.

Source link

Taiwan to invest $250B in US semiconductor manufacturing under new deal

The American Institute in Taiwan and the Taipei Economic and Cultural Representative Office have signed a trade agreement that will build new semiconductor factories in the United States.

The deal involves Taiwanese tech companies investing at least USD 250 billion (AUD 374 billion) in production facilities in the United States in exchange for a restructured U.S. tariff framework on Taiwanese industrial and pharmaceutical goods.

Under this agreement, tariff rates for Taiwanese goods are now capped at a maximum of 15% – down from 20%. These apply to Taiwanese exports, such as auto parts, timber, lumber and wood derivative products. A 0% “reciprocal tariff” will be applied to generic pharmaceuticals and their ingredients, aircraft components and some natural sources.

“The United States and Taiwan will establish world-class industrial parks in the United States to strengthen America’s industrial infrastructure and position the United States as the global centre for next-generation technology, advanced manufacturing, and innovation,” the U.S. Department of Commerce said in a statement last week.

Beyond tariff adjustments, the deal includes measures to increase market access and investment between the two regions.

Taiwan will facilitate expanded U.S. investment within its own domestic industries, specifically focusing on defence technology, telecommunications, biotechnology, semiconductors, and artificial intelligence. This is intended to deepen technological collaboration and strengthen the U.S. position in these critical emerging sectors.

The trade deal also includes specific “reward” mechanisms for Taiwanese semiconductor companies that localise production in the United States. Companies building new U.S. capacity can import up to 2.5 times their planned capacity duty-free. Once a Taiwanese company finishes building its new factory in the United States, the U.S. government will allow that company to bring in extra chips from its overseas plants without charging them the standard “security” tax, according to the Commerce Department’s statement. 

Source link

US manufacturing output unexpectedly increases in December

WASHINGTON, Jan 16 (Reuters) – U.S. factory production unexpectedly increased in December amid a surge in primary metals output that offset a decline at ​motor vehicle assembly plants, but activity contracted in the fourth quarter against ‌the backdrop of challenges from import tariffs.

Manufacturing output rose 0.2% last month after an upwardly revised 0.3% ‌gain in November, the Federal Reserve said on Friday. Economists polled by Reuters had forecast production for the sector, which accounts for 10.1% of the economy, falling 0.2% after a previously reported unchanged reading in November.

Production at factories increased 2.0% on a year-over-year ⁠basis in December. But it ‌dropped at a 0.7% annualized rate in the fourth quarter after growing at a 2.8% pace in the third quarter. Manufacturing ‍has been hurt by President Donald Trump’s sweeping import duties, which he has ironically defended as needed to restore a long-declining domestic industrial base.

Though the levies have shored up industries like ​primary metals that faced stiff foreign competition, and an artificial intelligence investment ‌boom has supported certain segments, the rest of manufacturing has struggled, with the sector shedding 68,000 jobs in 2025.

Economists have long argued a manufacturing renaissance was impossible because of structural issues, including worker shortages. They expected some improvement this year as Trump’s tax cuts take effect.

Primary metals production jumped 2.4%. There were also sizeable increases ⁠in the output of electrical equipment, appliances and ​components as well as aerospace and miscellaneous transportation. ​But motor vehicle production dropped 1.1%, declining for a fourth straight month. Motor vehicle output fell

2.8% on a year-on-year basis in December.

Mining output ‍fell 0.7% after ⁠rebounding 1.7% in the prior month. Frigid temperatures boosted demand for heating, lifting utilities production 2.6%. Utilities output dropped 0.3% in November. Overall industrial production ⁠increased 0.4% after a similar gain in November. Industrial output rose 2.0% on a year-over-year basis in ‌December. It grew at a 0.7% rate in the fourth quarter.

(Reporting ‌by Lucia Mutikani; Editing by Andrea Ricci)

Source link

Commerce, Taiwan Deal Pledges $500B to Expand US Chip Manufacturing – MeriTalk

Taiwan will commit at least $500 billion in combined direct investment and credit guarantees to expand semiconductor and advanced technology manufacturing in the United States under a new trade agreement signed Thursday. 

The U.S. Department of Commerce said that the deal aims to “drive a massive reshoring of America’s semiconductor sector” that will “strengthen U.S. economic resilience, create high-paying jobs, and bolster national security.” 

The deal would also lower tariffs on imports from Taiwan to no higher than 15% – down from the current 20% rate of “reciprocal tariffs” for most Taiwanese imports. 

“Semiconductors are vital for America’s industrial, technological, and military strength. Yet, for far too long, the Washington establishment allowed this strategic sector to move offshore, leaving the United States dependent on foreign manufacturers and brittle global supply chains,” the Commerce Department said. “The Trump Administration is committed to reversing that trend.” 

Taiwanese investment will come in two tracks: a $250 billion direct investment in building and expanding U.S. advanced semiconductors, energy, and artificial intelligence production and innovation capacity; and at least $250 billion in credit guarantees to drive investment by Taiwanese companies to support the creation and expansion of the full U.S. chips supply chain and ecosystem.  

The United States and Taiwan will also establish U.S.-based industrial parks.  

While no details were provided on what Taiwan semiconductor and technology companies will be involved, the country manufactures most of the world’s advanced chips. One company, the Taiwan Semiconductor Manufacturing Company (TSMC), is the largest semiconductor manufacturer in the world. 

TSMC, which has operations worldwide, received $6.6 billion in direct funding under the CHIPS and Science Act from the Biden administration in late 2024.  

Under the agreement signed Thursday, future U.S. semiconductor tariffs will give Taiwanese chipmakers a break if they build in the United States, allowing duty-free imports tied to new U.S. capacity. Companies could import equipment and materials up to 2.5 times their planned output tariff-free during construction, and receive a reduced rate on imports above that limit. 

In addition, Taiwanese companies that have completed U.S. chip production projects will be able to import 1.5 times their new U.S. production capacity ?without tariffs.  

Commerce’s deal follows a White House memo allowing certain advanced semiconductor exports to China and other nations, provided that the United States gets a 25% cut of those profits. 

Source link