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. 

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Trump meets Intel CEO, hails US-Made Sub-2 Nanometer Chip, links manufacturing push to tariff policy

ANI |
Updated: Jan 09, 2026 08:39 IST

Washington DC [US], January 9 (ANI): US President Donald Trump has hailed chipmaker Intel for launching an advanced semiconductor product manufactured entirely in the United States, calling it a major achievement for American industry and a validation of his administration’s aggressive trade and manufacturing policies.
In a social media post, President Trump said he had a “great meeting” with Intel CEO Lip-Bu Tan, praising the company’s technological progress and its commitment to domestic manufacturing.
Trump stated that Intel has launched the first sub-2 nanometer CPU processor that has been designed, built, and packaged in the USA.
“I just finished a great meeting with the very successful Intel CEO, Lip-Bu Tan. Intel just launched the first SUB 2 NANOMETER CPU PROCESSOR designed, built, and packaged right here in the U.S.A.,” Trump wrote in the post.
The US President also highlighted the financial gains made by the US government through its ownership position in Intel. According to Trump, the United States government is a shareholder in the company and has already earned tens of billions of dollars for the American people in just four months through this stake.
“The United States Government is proud to be a Shareholder of Intel, and has already made, through its U.S.A. ownership position, Tens of Billions of Dollars for the American People – IN JUST FOUR MONTHS. We made a GREAT Deal, and so did Intel,” Trump said.
Trump further asserted that his administration is determined to bring leading-edge chip manufacturing back to America, adding that the progress made by Intel demonstrates that this objective is being achieved.
“Our Country is determined to bring leading edge Chip Manufacturing back to America, and that is exactly what is happening!!!” the President added.
Echoing Trump‘s comments, Intel CEO Lip-Bu Tan also shared a social media post expressing appreciation for the support received from the US leadership.
“Honored and delighted to have the full support and encouragement of @POTUS @realDonaldTrump and @CommerceGovSecretary @howardlutnick as we bring leading edge chip manufacturing back to America,” Tan said in his post.

He added that Intel is now shipping its latest Core Ultra Series 3 CPU processors, which are designed, manufactured, and packaged in the USA using the most advanced semiconductor technology.
“@intel is now shipping the latest Core Ultra Series 3 CPU processors – designed, manufactured and packaged with the most advanced semiconductor technology, right here in the USA,” the Intel CEO stated.
President Trump has repeatedly linked such developments to his administration’s trade policies. Since beginning his second term as President, Trump has pursued aggressive trade measures, including the imposition of tariffs, with the stated objective of boosting domestic manufacturing in the United States.
Trump has imposed tariffs on countries that were major exporters to the US, including India and China.
On India, Trump has already imposed 50 per cent tariffs on goods entering the United States since August 2025.
In another social media post, Trump cited recent economic data to argue that tariffs have strengthened the US economy and improved national security.
He claimed that the United States has recorded its lowest trade deficit since 2009 and that the figure is continuing to decline.
“Numbers released today show that the United States of America has the lowest Trade Deficit since 2009, and going even lower,” Trump said.
He further stated that the nation’s gross domestic product is predicted to come in at over 5 per cent, even after what he described as a 1.5 per cent loss due to a Democrat “Shutdown.”
Trump attributed these outcomes directly to his tariff policies, saying they have “rescued” the US economy and national security. He also urged the Supreme Court to take note of what he described as historic achievements before issuing what he called its most important decision ever.
“These incredible numbers, and the unprecedented SUCCESS of our Country, are a direct result of TARIFFS, which have rescued our Economy and National Security. I hope the Supreme Court is aware of these Historic, Country saving achievements prior to the issuance of their most important (ever!) Decision. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP.” (ANI)

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