Under a tariff agreement, Taiwan hopes to become a key AI partner of the US

Taiwan Seeks Strategic AI Partnership With US Following Trade Deal

Taiwan aims to become a close strategic partner of the United States in artificial intelligence after clinching a trade deal that reduces tariffs and boosts Taiwanese investment in the US, Vice Premier Cheng Li-chiun said on Friday.

The agreement, finalised on Thursday, cuts tariffs on several Taiwanese exports and encourages fresh investment into the US technology sector. It comes as the Trump administration has pressed Taiwan, a global semiconductor powerhouse, to expand its manufacturing footprint in the US, particularly in chips that underpin the rapid growth of artificial intelligence.

Under the deal, Taiwanese companies are set to invest up to $250 billion in the United States to expand production across semiconductors, energy and artificial intelligence. This includes $100 billion already committed by Taiwan Semiconductor Manufacturing Company (TSMC) in 2025, with further investments expected, according to US Commerce Secretary Howard Lutnick. In addition, Taiwan will guarantee another $250 billion in credit to facilitate future investments, the US administration said.

Speaking at a news conference in Washington, Cheng, who led the negotiations for Taipei, described the agreement as a “win-win” outcome. She said it would not only deepen Taiwan’s investment in the US but also encourage greater American investment in Taiwan. The United States remains Taiwan’s most important international supporter and its primary arms supplier.

“In this negotiation, we promoted two-way Taiwan–US high-tech investment, hoping that in the future we can become close AI strategic partners,” Cheng said in livestreamed remarks.

She added that the investment plan would be led by companies rather than the Taiwanese government, and stressed that Taiwanese firms would continue to invest domestically alongside their overseas expansion.