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Taiwan says it plans to lead a democratic high tech supply chain with the United States after signing a new trade agreement last week.
Taiwan Vice Premier Cheng Li chiun spoke to reporters in Taipei on Tuesday. She said the deal will strengthen cooperation in semiconductors and artificial intelligence.
Closer Technology Cooperation
The agreement follows pressure from U.S. President Donald Trump. He has urged Taiwan to expand chip production inside the United States.
Taiwan is one of the world’s largest semiconductor producers. Its chip exports give it a large trade surplus with Washington.
Under the deal, chipmakers like Taiwan Semiconductor Manufacturing Co. will face lower tariffs if they expand U.S. production. Some equipment and products will enter the U.S. duty free.
The U.S. will also cut tariffs on most other Taiwanese exports. Rates will fall from 20 percent to 15 percent.
Major Investment Plans
Taiwanese companies will invest $250 billion in the United States. The funds will support semiconductor, energy, and artificial intelligence projects.
Taiwan will also provide $250 billion in credit guarantees. These guarantees will help companies fund future investments.
Cheng said the deal will not weaken Taiwan’s chip industry. Many people view the sector as vital to the country’s economy and security.
She said Taiwan wants to grow its global reach, not move its supply chain away from home.
Shared Democratic Goals
Cheng said the partnership reflects shared democratic values. She added that Taiwan wants to work closely with the U.S. as artificial intelligence reshapes global industries.
She said Taiwan hopes the two countries can lead together. Their goal is to build a strong high tech supply chain for democratic nations.
Ongoing Regional Tensions
The United States remains Taiwan’s strongest international supporter. It is also Taiwan’s main arms supplier, despite the lack of formal diplomatic ties.
China claims Taiwan as its territory. Beijing has not ruled out using force, which adds tension to the growing U.S. Taiwan alliance.
