Taiwan aims to be strategic AI partner with US under tariff deal

Taiwan aims to become a close strategic artificial intelligence partner with the United States thanks to a deal to reduce tariffs and boost Taiwanese investment in the country, Taiwan Vice Premier Cheng Li-chiun said on Friday.

The Trump administration has pushed Taiwan, a major semiconductor producer, to invest more in the US, specifically in making the chips that are powering the trend towards AI.

The trade deal clinched on Thursday cuts tariffs on many of the semiconductor powerhouse's exports, and directs new investments in the US technology industry.

Taiwanese companies will invest US$250 billion (HK$1.95 trillion) to increase production of semiconductors, energy and artificial intelligence in the US. That includes US$100 billion already committed by chipmaker TSMC in 2025, with more to come, according to US Commerce Secretary Howard Lutnick.

Taiwan will also guarantee an additional US$250 billion in credit to facilitate further investment, the Trump administration said.

Cheng, who led the talks for Taipei, told a news conference in Washington that the deal was win-win, and would also encourage US investment in Taiwan, for whom the United States is its most important international backer and arms supplier.

“In this negotiation we promoted two-way Taiwan–US high-tech investment, hoping that in the future we can become close AI strategic partners,” she said in livestreamed comments.

The investment plan is company not government-led, and Taiwan companies will continue to invest at home, Cheng added.

Reuters