On January 15, 2026, the United States and Taiwan agreed to a trade deal to establish “a strategic economic partnership … to decisively strengthen U.S. domestic semiconductor supply chains and secure America’s technological and industrial leadership.” While the text and full terms of the trade deal were not released, the Department of Commerce released a fact sheet setting forth the scope of the agreement. According to the fact sheet, the following terms have been agreed to:
- Direct Investments: Taiwanese semiconductor and technology enterprises will make new, direct investments totaling at least $250 billion to build and expand advanced semiconductor, energy, and artificial intelligence production and innovation capacity in the United States.
- Additional Investments: Taiwan will provide credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises, supporting the establishment and expansion of the full semiconductor supply chain and ecosystem in the United States.
- Industrial Clusters: The United States and Taiwan will establish industrial parks in the United States to strengthen U.S. industrial infrastructure and position the United States for next-generation technology, advanced manufacturing, and innovation.
In addition, Taiwan will facilitate U.S. investment in the Taiwanese semiconductor, artificial intelligence (AI), defense technology, telecommunications, and biotechnology industries to expand market access for U.S. companies, deepen technological collaboration, and strengthen U.S. leadership in critical and emerging industries.
In return, the agreement sets forth the following U.S. tariff framework:
- The U.S. reciprocal tariff rate applied to Taiwanese goods will total no more than 15 percent.
- U.S. Section 232 duties applied to Taiwanese auto parts, timber, lumber, and wood derivative products will total no more than 15 percent.
- The United States will apply a zero percent reciprocal tariff for generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources.
- Future Section 232 duties applied to Taiwanese semiconductors will reward Taiwanese semiconductor producers that invest in the United States.
- Taiwanese companies building new U.S. semiconductor capacity may import up to 2.5 times that planned capacity without paying Section 232 duties during the approved construction period, with a lower preferential Section 232 rate for above-quota imports.
- Taiwanese companies that have completed new chip production projects in the United States will still be able to import 1.5 times their new U.S. production capacity without paying Section 232 duties.