Taiwan is a global powerhouse in semiconductor production, a sector central to the world economy.
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Firstpost19-01-2026, 11:44

Taiwan to Remain Top AI Chip Maker After US Trade Deal Cuts Tariffs, Boosts Investment

  • Taiwan announced it will remain the world's leading AI chip producer following a new trade agreement with the US.
  • The deal reduces US tariffs on Taiwanese goods to 15% and aims to boost investment in the US semiconductor sector.
  • Taiwanese officials praised the agreement, while China's foreign ministry expressed strong opposition.
  • The deal faces scrutiny from Taiwan's opposition-controlled parliament due to concerns about economic 'hollowing out'.
  • Taiwanese companies are expected to invest at least $250 billion in the US, with TSMC potentially expanding operations in Arizona.

Why It Matters: Taiwan will maintain its AI chip dominance with a new US trade deal, despite concerns over investment shifts.

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