Taiwan said it aims to deepen its partnership with the United States in artificial intelligence following a trade deal that lowers tariffs and encourages expanded high-tech investment. Vice Premier Cheng Li-chiun said the agreement positions Taiwan as a potential long-term AI strategic partner to the US.
The deal, concluded in Washington, promotes two-way investment in advanced technologies and follows pressure from the Trump administration for Taiwan to expand semiconductor production in the US. Taiwan is a critical supplier of chips used in AI systems, led by Taiwan Semiconductor Manufacturing Co.
US Commerce Secretary Howard Lutnick said Taiwanese companies would invest $250 billion in the United States across semiconductors, energy, and AI, including $100 billion previously committed by TSMC. The Trump administration also said Taiwan would guarantee an additional $250 billion in credit to support further investment.
Cheng said the investment push is company-led and does not signal a shift of Taiwan’s technology base abroad. He described the strategy as expanding supply chains rather than relocating them. The agreement strengthens US-Taiwan technology ties but may further strain relations with China, which opposes closer cooperation between Washington and Taipei.
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