TAIPEI (Taiwan News) — Taiwan and the US are set to announce a tariff agreement under which Taiwan is expected to commit around NT$12.56 trillion (US$400 billion) in US investments, per the Financial Times.
The report noted the US has imposed a 20% tariff on Taiwanese exports, below the so-called “liberation day” rate of 32% but still five percentage points higher than tariffs on Japan or South Korea. Taiwan’s chip industry is currently exempt from these tariffs.
A separate Section 232 national security review could extend tariffs to semiconductors, related tools, components, and consumer electronics. Taiwan is seeking to finalize a tariff agreement while awaiting the review’s results.
During negotiations, the US reportedly pushed Taiwan to shift more semiconductor production to the US. In September, US Commerce Secretary Howard Lutnick proposed a 50-50 split, a scheme that Taipei rejected.
National Science and Technology Council Minister Wu Cheng-wen (吳誠文) was quoted as saying the US would not impose high tariffs on Taiwan’s leading semiconductor industry. “They understand that punishing Taiwan is not in their interests,” Wu said.
He added that Taipei and Washington have reached a “consensus” for Taiwan to assist the US in developing its chip industry in exchange for tariff relief. Wu said that cooperation includes science park management, attracting businesses, and linking research with industry.
A US official reportedly said Taiwan’s investment pledge falls “between those agreed with Japan and those agreed with South Korea,” totaling about NT$12.56 trillion. “The difference is that in Taiwan’s case, these are not something vague but investments that are being planned or even underway already,” the official added.
TSMC, which produces roughly 90% of the world’s advanced chips, has committed NT$5.18 trillion (US$165 billion) in Arizona to build wafer plants, fabrication facilities, and R&D centers. Two sources said TSMC’s investment will be counted as part of Taiwan’s overall US pledge.
During the APEC meeting in South Korea this month, Wu reportedly met with US Secretary of State Marco Rubio and other senior officials. He pointed out that most of TSMC’s US clients, such as Google, operate globally.
“It does not make sense to ship the chips to the US and then ship them around the world,” Wu said. He stressed that Taipei is committed to keeping advanced R&D in Taiwan to prevent the domestic industry from being hollowed out.
