Trade Talks Revamp: Taiwan's Investment in U.S. Manufacturing Sector

Negotiations are underway for a deal involving Taiwan's investment and workforce training in U.S. semiconductor manufacturing. While Taiwan aims to expand U.S. operations and reduce tariffs, high-tech exports like semiconductors remain tariff-exempt. The proposed agreement also involves building science parks, though details remain speculative.

The Trump administration is in negotiations with Taiwan to finalize a trade deal centered around investing in U.S. semiconductor manufacturing and workforce training, sources confirmed. Key players like Taiwan Semiconductor Manufacturing Company (TSMC) are expected to extend their capital and expertise to bolster U.S. operations.

Current export tariffs on Taiwanese goods stand at 20%, with discussions aimed at reducing this as part of the broader deal. Although semiconductors are tariff-free due to their critical role in modern technology, Taiwan remains committed to enhancing infrastructure with science parks.

The context of these negotiations aligns with larger investments seen from South Korea and Japan, who have pledged billions. Talks between Taiwan and U.S. officials continue with documents being exchanged to solidify arrangements, despite uncertainties in the final agreement specifics.

(With inputs from agencies.)