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US and Taiwan Reach $250 Billion Semiconductor Deal, China Reacts

Published January 16, 2026, 10:32
US and Taiwan Reach $250 Billion Semiconductor Deal, China Reacts

The United States and Taiwan have reached a major trade and industrial agreement in the semiconductor sector, aimed at boosting microcircuit production in the US and reducing tariffs on Taiwanese products. The agreement involves at least $250 billion in investment from Taiwanese semiconductor companies in the US economy. This agreement aims to reduce US dependence on Taiwan for semiconductor supply, as Taiwan produces over 50% of the world's semiconductors and almost all of the most advanced microchips. Washington seeks to relocate 40% of Taiwan's semiconductor supply chain to the US. The agreement also includes a reduction in tariffs on Taiwanese exports to the US from 20% to 15%, bringing them in line with those applied to products from Europe and Japan. China has expressed strong opposition, stating that it “firmly opposes” the agreement and considers Taiwan an integral part of its territory. This agreement is part of a broader US effort to strengthen its national security and ensure self-sufficiency in the semiconductor sector, a critical area for technological progress and competitiveness.