Taiwan seeks to become a key AI collaborator with the US through the tariff agreement

Taiwan Seeks Closer AI Collaboration with the U.S. Through New Trade Agreement

TAIPEI, Jan 16 (Reuters) — Taiwan is positioning itself as a key strategic partner to the United States in the field of artificial intelligence, following a recent agreement that will lower tariffs and encourage greater Taiwanese investment in America, according to Vice Premier Cheng Li-chiun.

The Trump administration has encouraged Taiwan—a leading force in semiconductor manufacturing—to expand its investments in the United States, particularly in the production of chips that are essential for advancing AI technologies.

The agreement, finalized on Thursday, will reduce tariffs on a wide range of Taiwanese exports and channel new investments into the U.S. technology sector.

Taiwanese firms are set to invest $250 billion in the United States to ramp up output in semiconductors, energy, and artificial intelligence. This figure includes $100 billion already pledged by chip giant TSMC for 2025, with further investments anticipated, according to U.S. Commerce Secretary Howard Lutnick.

Additionally, Taiwan will provide an extra $250 billion in credit to support further investments, as announced by the Trump administration.

Cheng, who headed the negotiations for Taiwan, described the agreement at a Washington press conference as mutually beneficial. She noted that the deal is also expected to stimulate American investment in Taiwan, whose most significant international ally and defense partner is the United States.

“Throughout these talks, we have promoted reciprocal high-tech investment between Taiwan and the U.S., aiming to forge a close strategic partnership in AI moving forward,” Cheng remarked during a livestreamed statement.

She emphasized that these investments are being driven by private companies rather than the government, and that Taiwanese businesses will maintain their domestic investments as well.

Reporting by Wen-Yee Lee and Ben Blanchard; Edited by Jacqueline Wong and Stephen Coates