The U.S.-Taiwan Trade Agreement is about to be finalized, with tariffs planned to be reduced to 15%. TSMC is expanding its factory layout in the United States.

U.S.-Taiwan Trade Agreement Enters Final Stages, Tariffs to be Reduced to 15% as TSMC Commits to Expand U.S. Manufacturing

America's media outlet, The New York Times, reported on Monday that the Trump administration is set to reach a significant trade agreement with Taiwan, including lowering tariffs on U.S. exports to Taiwan to 15%, and requiring TSMC to further expand its investments in the United States.

The report, based on information from three sources familiar with the matter, stated that this agreement would reduce the tariff rate on U.S. goods imported from Taiwan to 15%. This level is comparable to the agreements reached last year by the U.S. with Asian allies such as Japan and South Korea. Previously, the tariff rate on goods from Taiwan was 20%.

In addition to the tariff reduction, another key component of the agreement involves semiconductor manufacturing investment. TSMC has pledged to build at least five more semiconductor manufacturing facilities in Arizona, nearly doubling the number of factories it currently operates there. According to several informed sources, the agreement has undergone months of negotiations and is now undergoing final legal review, and could be announced as early as this month.

Related individuals also mentioned that semiconductor products, which involve national security and strategic industries, have been largely excluded from tariff lists for many years. The U.S. Chamber of Commerce has also conducted long-term reviews of such imports. However, within the broader framework of trade and industry negotiations, the U.S. still hopes to formalize investment commitments and supply chain security through official agreements to ensure stable development of advanced chip production within the United States.

One of the core goals of the U.S. government is to shift more semiconductor manufacturing capacity to the U.S. mainland. Taiwan holds a dominant position in global chip production, and its products are widely used in artificial intelligence, cloud computing, consumer electronics, and defense technology.

TSMC is currently the world's leading chip manufacturer. Since 2020, TSMC has completed one wafer fabrication plant in Arizona and is currently building a second, expected to be operational by 2028. Additionally, TSMC has committed to building four more new plants in the coming years. According to informed sources, under the framework of the U.S.-Taiwan trade negotiations, TSMC has agreed to add at least five more facilities.

However, the specific timeline for these investments remains unclear. TSMC's spokesperson declined to comment on the matter. After the news broke, TSMC's stock rose more than 2.4% on Monday.

Since April of this year, when the Trump administration announced an increase in tariffs, it has immediately engaged in negotiations with multiple countries, seeking to exchange lower tax rates for investments in the U.S. or commitments to cooperate in areas aligned with U.S. national security priorities. South Korea and Japan have therefore pledged to invest billions of dollars in sectors such as shipbuilding, nuclear energy, electronics, and critical minerals in the U.S.

Source: rfi

Original: toutiao.com/article/1854207353112586/

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