"The US and Taiwan have signed an agreement that will see a multi-billion dollar investment into domestic development of semiconductors and related infrastructure. The US Department of Commerce announced that Taiwanese businesses will make an upfront investment of at least $250 billion into their US production capacity, while Taiwan's government will provide credit guarantees of at least another $250 billion in support of the semiconductor industry and supply chain in the US."
"In exchange, Taiwan will receive a better deal on tariffs. Reciprocal tariffs will be limited to 15 percent, compared with the previous 20 percent rate. Generic pharmaceuticals and their generic ingredients, aircraft components, and unavailable natural resources will be not be subjected to reciprocal tariffs under the arrangement. Taiwanese companies with US production will also see increased import amounts without being charged duties under the Section 232 framework."
The United States and Taiwan agreed on a major semiconductor investment package that commits Taiwanese businesses to at least $250 billion in upfront investment in US production capacity and Taiwan's government to at least $250 billion in credit guarantees for the US semiconductor industry and supply chain. Reciprocal tariffs between the two economies will be capped at 15 percent rather than 20 percent, with specific exemptions for generic pharmaceuticals and ingredients, aircraft components, and unavailable natural resources. Taiwanese firms with US production will gain increased duty-free import allowances under Section 232. Major Taiwanese chipmakers are positioned to expand US operations, and the US aims to relocate roughly 40 percent of Taiwan's semiconductor supply chain stateside, using tariff incentives including the prospect of much higher tariffs for firms that do not build in America.
Read at Engadget
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