Taiwanese tech companies to invest $250 billion in U.S. in exchange for lower duties

The U.S. and Taiwan have concluded a long-discussed trade agreement, which provides for a reduction in duty rates on goods imported into the U.S. market from 20% to 15%, and for some products, such as generic drugs and airline components, the fee will be eliminated altogether, CNBC reports . In addition, as part of the deal, Taiwanese technology companies will invest at least $250 billion in the United States - to expand production in the field of semiconductors, energy and artificial intelligence. Taiwan will provide another $250 billion in the form of loan guarantees for further financing, Bloomberg reports .

Companies that build semiconductor production facilities in the United States will be exempted from duties, the U.S. Department of Commerce said. This includes contract AI chip maker Taiwan Semiconductor Manufacturing Co., CNBC noted. Such players will be able to import duty-free products up to 2.5 times the capacity they create while they build factories. Once completed - the allowable duty-free volume will drop to 1.5 times the current capacity.

As Bloomberg wrote this week, the agreement calls for TSMC to build at least four more chip plants in Arizona - in addition to the six fabs and two advanced chip packaging facilities the company has already promised to open there.

This article was AI-translated and verified by a human editor