🇺🇸🇹🇼 US-Taiwan Chip Agreement: $250 Billion USD Investment in the US

🔹 The US and Taiwan have reached a trade agreement whereby Taiwanese chip companies will invest at least $250 billion USD in semiconductor manufacturing in the US, while the Taiwan government will guarantee credit for these investments (meaning the Taiwan government commits to support if businesses cannot repay their debts)

🔹 In return, the US will impose a cap on tariffs with Taiwan at 15% and exempt certain items such as medicines and aircraft components from tariffs.

🔹 TSMC plans to continue expanding in Arizona, adding to the approximately $40 billion USD already invested in the US.

🔹 Chip companies building factories in the US will enjoy tax incentives, while companies that do not invest may face tariffs of up to 100%.

🔹 The goal of the agreement is to relocate about 40% of Taiwan's semiconductor supply chain to the US and reduce geopolitical risks as well as supply chain disruptions.