Filenews 16 January 2026
The United States and Taiwan have reached a major trade and industrial agreement in the semiconductor sector, which provides for a massive development of chip production on American soil and a reduction in customs duties on Taiwanese products. The agreement provoked an immediate and harsh reaction from China, which reiterated that it considers Taiwan an integral part of its territory.
As Howard Latnick, the US Secretary of Commerce, told CNBC, Washington needs the semiconductors for national security reasons, underlining that "they must be manufactured in the United States". He also stressed that the US cannot depend on a country "almost 15.000 kilometers away" for critical technological products, expressing the goal of self-sufficiency.
Investments of $250 billion and supply chain transfer
The deal calls for at least $250 billion in investments by Taiwanese semiconductor companies in the U.S. to develop advanced chip production. At the same time, $250 billion in credit guarantees are planned to strengthen the semiconductor ecosystem and supply chain in the United States, according to a statement from the US Department of Commerce.
Mr. Latnik said that Washington's goal is to transfer 40% of Taiwan's semiconductor supply chain to the United States, while Taipei is committed to supporting American investments in the semiconductor industry, artificial intelligence and defense technologies.
Tariff reduction and trade context
The agreement reduces customs duties on Taiwan's exports to the U.S. from 20% to 15%, putting them on a par with those applied to products from Europe and Japan under similar trade agreements.
Negotiations began in April, following Donald Trump's decision to impose tariffs on most of the US's trading partners. Initially, the US president had threatened tariffs of 32% on Taiwanese products, a percentage that was gradually reduced.
The "silicon shield" and the global market
Taiwan produces more than 50% of the world's semiconductors and almost all of the most advanced microchips, which are used in smartphones, data centers and artificial intelligence applications. This sovereignty is characterized as a "silicon shield", as it acts as a deterrent against a possible Chinese invasion or blockade, Agence France-Presse points out.
Taiwan's Finance Minister, Kung Ming-hsin, said that, based on current forecasts, Taiwan will remain the leading global producer of semiconductors for artificial intelligence, both nationally and internationally.
Beijing's tough reaction
China reacted immediately, stating that it "resolutely" opposes the deal. Foreign Ministry spokesman Guo Xiakun called on the US to "scrupulously respect the one China principle", stressing that Beijing rejects any agreement of a "formal nature" between states that maintain diplomatic relations with China and Taiwan.
China claims Taiwan as an integral part of its territory, making the US-Taiwan deal another geopolitical point of friction in the already tense East Asian scene.
Capital.gr
