The U.S. and Taiwan have reached a trade agreement to build chips and chip factories on American soil, the Department of Commerce announced on Thursday.
As part of the agreement, Taiwanese chip and technology companies will invest at least $250 billion in production capacity in the U.S., and the Taiwanese government will guarantee $250 billion in credit for these companies.
In exchange, the U.S. will limit reciprocal tariffs on Taiwan to 15%, down from 20%, and commit to zero reciprocal tariffs on generic pharmaceuticals, their ingredients, aircraft components, and some natural resources.
Taiwan Semiconductor has bought land and could expand in Arizona as part of this deal, Commerce Secretary Howard Lutnick told CNBC’s Brian Sullivan in an interview on Thursday.
“They just bought hundreds of acres adjacent to their property,” Lutnick said. “I’ll let them go through with their board and give them time.”
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[https://www.cnbc.com/2026/01/15/us-taiwan-chips-deal-china.html](https://www.cnbc.com/2026/01/15/us-taiwan-chips-deal-china.html)