TAIPEI (Taiwan News) — Taiwan aims to become an AI partner to the US under a new tariff-cutting trade deal that includes massive high-tech investment, Vice Premier Cheng Li-chiun (鄭麗君) said Friday.
Cheng said the negotiations focused on promoting two-way investment in advanced technologies — particularly AI and semiconductors — to deepen long-term industrial cooperation, per Reuters. She led the talks that concluded Thursday in Washington.
The agreement reduces US tariffs on many Taiwanese exports and encourages new investment in US technology manufacturing. However, the move could further strain relations with China as Beijing opposes high-level Taiwan–US exchanges.
US Commerce Secretary Howard Lutnick said Taiwanese companies would invest about NT$7.9 trillion (US$250 billion) in semiconductors, energy, and AI in the US. The figure includes NT$3.16 trillion already pledged by TSMC, with additional investment expected.
The Trump administration said Taiwan would also provide NT$7.9 trillion in credit guarantees to further corporate investment. Cheng described the arrangement as “win-win,” saying it would also encourage US companies to invest in Taiwan.
She stressed that the investment push is company-led rather than government-driven and said Taiwanese firms will continue to expand operations at home. The strategy, she said, is to extend Taiwan’s technology ecosystem abroad without weakening its domestic base.
Economics Minister Kung Ming-hsin (龔明鑫) said investments will also cover AI servers and energy, though companies will disclose chip-related details themselves. He added that Taiwan estimates advanced chip production will remain roughly 80% in Taiwan and 20% in the US by 2036.
The announcement lifted investor sentiment, with Taiwan’s benchmark stock index closing at a record high on Friday, supported by strong TSMC earnings and optimism.
