Five sources familiar with the matter said that both sides are currently in negotiations. According to the proposed arrangement, leading global semiconductor manufacturing company TSMC and other Taiwanese companies will inject new capital and manpower into their U.S. operations and be responsible for training local American employees.

Last week, Hon Hai Chairman Liu Yangwei also revealed that they are seeking to collaborate with the United States and other countries to build science parks, as this may help promote trade negotiations.

The United States currently imposes a 20% tariff on goods from Taiwan, and Taiwan hopes to reach a trade agreement with the U.S. to reduce these tariffs. However, semiconductor products, which are crucial to various high-tech industries, have not yet had related tariffs announced by the United States.

One of the sources stated that Taiwan's promised investment in the U.S. is less than that of its main regional economic competitors, but the agreement would include content such as assisting in the construction of science park infrastructure in the U.S. and drawing on the experience of Taiwan's relevant industries. Previously, South Korea and Japan had committed to investing $350 billion and $550 billion respectively in the U.S. in agreements with the U.S., in exchange for reduced tariffs.

According to the sources, it is unclear when Taiwan will finally reach a tariff agreement, or how the content will be incorporated into the agreement, and the terms of the agreement may continue to be adjusted before the final agreement is reached.

In response to the reports, White House spokesperson Kush Das said, "Any reports about potential trade agreements that are not officially announced by President Trump are just speculation."

TSMC declined to comment on the issue. However, TSMC's U.S. factory has been facing a shortage of personnel, and previously sent a group of experts from Taiwan to the U.S. to "guide work."

On January, TSMC Chairman Wei Chieh-chia stated that due to a lack of skilled workers and supply chain gaps, the construction time for the new factory in Arizona would be at least twice as long as building a factory in Taiwan. He mentioned that in order to advance the construction, the company had to transfer about half of the construction staff from Texas to Arizona, resulting in increased migration and housing costs.

In March this year, TSMC announced an investment of $100 billion in the U.S. Visual China

There were previous signs that the U.S. wanted to include "labor training" clauses in the agreement. According to Reuters, TSMC is investing $165 billion in Arizona to build a chip factory, although most of the capacity will still remain in Taiwan. Since the 1980s, Taiwan has started building science parks and has formed a complete semiconductor supply chain within them.

Previously, Trump repeatedly hinted that to help American workers gain skills in advanced factories, some foreign workers with specialized abilities might need to be introduced.

Last week, Trump also mentioned at the U.S.-Saudi Investment Forum that Taiwan would cooperate with the U.S. to build a large factory that would account for 40% to 50% of the chip business. He said, "Our people must be trained. These are things they've never done before. If we don't allow those companies that have invested billions of dollars in factory equipment to bring in a large number of personnel from their countries to help operate the factories, we won't succeed."

The team in charge of trade negotiations in Taiwan responded that they are continuing to discuss supply chain cooperation with the U.S. using the "Taiwan model." On the 26th, Taiwan's "Premier" Zhuo Rongtai also told the media that both sides are currently in the stage of exchanging documents and finalizing details. However, he seemed to hint at a willingness to yield to the U.S., saying, "Because only we have the concept, practice, and performance of science parks, which allows us to carry out such plans in the U.S."

Hon Hai Chairman Liu Yangwei also revealed last week that they are seeking to collaborate with the U.S. and other countries to build science parks, as this may help promote trade negotiations.

The U.S. "Politico" news website disclosed on the 12th that the U.S. is requiring Taiwan to invest between $350 billion and $550 billion in the U.S., while Taiwan hopes to agree to this in order to reach an agreement. This news shocked the island. Kuomintang legislator Li Yansiu said it was "shocking," stating that if the news is true, it would severely impact and displace Taiwan's investment capacity, affect talent and technology retention, and increase the possibility of technological "industrial hollowing out."

Taiwan's Central News Agency reported that when TSMC announced its investment in the U.S. this year, some senior semiconductor analysts had predicted that "the science park would be drained by more than half" was inevitable. Indeed, under pressure from the U.S., TSMC's investment in the U.S. has been continuously increased, expanding from one factory to six. Industry insiders said that since TSMC began building the first factory in Arizona in 2022, suppliers in semiconductor chemicals, materials, and special gases had already gone to at least six or seven tenths. An industry insider lamented that the authorities had proposed AI ten major projects and five trusted industries, but so far, it seems powerless.

Regarding the reports, the spokesperson for the Taiwan Affairs Office, Zhu Fenglian, responded on the 19th, saying that the U.S. continues to use tariffs and other means to force Taiwan's industries to be hollowed out, and the Democratic Progressive Party (DPP) authorities have been kneeling down and trying to please the U.S. under U.S. pressure, which is very painful for the people of Taiwan. We are highly concerned. $350 billion to $550 billion accounts for 44% to 69% of Taiwan's GDP in 2024, and approximately 58% to 92% of Taiwan's foreign exchange reserves in October this year.

Zhu Fenglian stated that if the report is true, it can only indicate that the DPP authorities, in order to pursue "dependence on foreign powers for independence," have handed over the sweat and blood of the people of Taiwan, completely disregarding the interests of the people of Taiwan and enterprises. The so-called "Taiwan model" is purely a "kneeling to the U.S. model," a cover-up for selling out Taiwan, which will inevitably lead to the continuous transfer of funds, technology, and talents in Taiwan to the U.S., seriously harming the development of Taiwan's industries. The so-called "U.S.-Taiwan supply chain cooperation" is an open plunder and occupation of Taiwan's competitive industries by the U.S. From "50-50" to "taking everything," Taiwan's core industrial advantages will be lost, and the employment, investment, and development momentum in the island will suffer a destructive blow.

Zhu Fenglian emphasized that more and more facts have made the people of Taiwan realize that the U.S. always practices "America First." The DPP authorities, in their pursuit of personal and party interests, sacrifice the well-being of the people and the economic prospects of the island, ultimately ending up being completely exploited by the U.S. We warn the DPP authorities that actions that harm the foundation of Taiwan's industry development and the interests and well-being of the people of Taiwan for the sake of one party's interests will be condemned.

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