US-Taiwan Chip Deal: Tariffs Cut, Billions Invested Amid China Tensions

• The US and Taiwan finalized a trade agreement to reduce tariffs on Taiwanese semiconductor exports, aiming to boost US tech investment.
• Taiwanese chipmakers like TSMC expanding US production will face lower or zero tariffs on semiconductors and related equipment.
• In exchange, Taiwanese companies will invest $250 billion in the US for semiconductors, energy, and AI, including TSMC's $100 billion commitment.
• The deal seeks to bring 40% of Taiwan's chip supply chain to the US, with high tariffs threatened for non-US production.
• Washington views computer chips as a national security issue, reducing reliance on foreign manufacturing, especially from Taiwan.

Why It Matters: US and Taiwan strike a significant chip trade deal, cutting tariffs and boosting US investment amid China tensions.