Taiwan and U.S. Pave Path to Strategic Tech Partnership

Taiwan is exploring a high-tech strategic partnership with the U.S., seeking to cut current 20% tariffs on exports. Vice Premier Cheng Li-chiun, leading the talks, aims to expand U.S. investment without shifting supply chains, while TSMC invests $165 billion in U.S. chip factories.

Taiwan is considering a high-tech strategic partnership with the United States as part of ongoing efforts to foster economic ties, according to the island's top tariff negotiator. The U.S. is eager for increased Taiwanese investment, adding another dimension to the discussions focused on reducing the 20% tariff on Taiwan's exports to the U.S.

Leading the talks, Taiwan Vice Premier Cheng Li-chiun remains optimistic about striking a deal that doesn't involve relocating supply chains. Instead, the strategy focuses on broadening U.S. production capacity under a "Taiwan model." Cheng recently returned from negotiations, emphasizing the potential for expanding U.S. investment.

Despite the U.S. government shutdown affecting official responses, Taiwan's TSMC continues its ambitious $165 billion investment in Arizona chip factories. The proposal by U.S. Commerce Secretary Howard Lutnick for a 50-50 chip production split was deemed unviable by Taiwan, maintaining its focus on bolstering the domestic industry while fostering international collaboration.

(With inputs from agencies.)