According to reports from Bloomberg, import duties would decrease from the current 20% to 15%. At this new rate, shipments from Taiwan would be on par with those from South Korea and Japan, both of which made deals last year.
The reports indicate that under the proposed agreement, TSMC would pledge to build at least four more chip manufacturing facilities in Arizona, in addition to the previously committed six factories and two advanced packaging facilities.
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These commitments would enhance TSMC’s existing plans, as the leading global manufacturer of advanced semiconductors for artificial intelligence is set to invest up to $165 billion in the US. TSMC’s prominence in Washington has increased due to China’s military actions aimed at Taiwan.
Considering that the construction of a single factory can cost around $20 billion, TSMC’s additional investment might approach or even exceed $100 billion. The source mentioned that the completion of the four new factories is expected in the 2030s.
Requests for comments have not been promptly addressed by the Commerce Department, the Office of the US Trade Representative, or the White House. TSMC also did not respond immediately, while the Taipei Economic and Cultural Representative Office in the US stated it had no comment.
A finalized agreement would represent the conclusion of months of discussions between President Donald Trump’s administration and the Taiwanese government, which has consistently indicated that a deal was imminent. Taipei would benefit from a lowered tariff rate that matches the tariffs the US enforces on imports from its neighboring countries, Japan and South Korea. Trump would receive another investment commitment from a significant overseas manufacturer, which he could present as another achievement of his trade policy.
(Edited by : Juviraj Anchil)
