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Taiwan aims to be strategic AI partner with US under tariff deal
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Taiwan aims to be strategic AI partner with US under tariff deal
Mar 11, 2026 12:49 AM

TAIPEI, Jan 16 (Reuters) - Taiwan aims to become a close

strategic artificial intelligence partner with the United States

thanks to a deal to reduce tariffs and boost Taiwanese

investment ‌in the country, Taiwan Vice Premier Cheng Li-chiun

said on Friday.

The ​Trump administration has pushed Taiwan, a major

semiconductor producer, to ‍invest more in the U.S., specifically

in ⁠making the ⁠chips that are powering the trend towards AI.

The trade deal clinched ‌on Thursday cuts tariffs ​on many of

the semiconductor powerhouse's exports, and directs new

investments in the U.S. technology industry.

Taiwanese ⁠companies will invest $250 billion ‍to ​increase

production of semiconductors, energy and artificial intelligence

in the U.S. That includes $100 billion already committed by

chipmaker TSMC ‍in 2025, with more to come, according

to U.S. Commerce Secretary Howard Lutnick.

Taiwan will also guarantee an additional $250 billion in

credit to facilitate further investment, the Trump

administration said.

Cheng, who led the talks for Taipei, ​told ‍a news conference

in Washington that the deal was win-win, and would also

encourage U.S. investment ​in Taiwan, for whom the United States

is its most important international backer and arms supplier.

"In this negotiation we promoted two-way Taiwan-U.S.

high-tech investment, hoping that in the future we can become

close AI strategic partners," she said in livestreamed ​comments.

The investment plan is company not government-led, and

Taiwan companies will continue to invest at home, Cheng added.

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