The US and Taiwan are strengthening cooperation. New rules of the game for the semiconductor industry
In return, the US agreed to reduce tariffs on Taiwanese products to 15%, as well as to completely abolish customs duties on generic drugs, aviation components and some natural raw materials.
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The agreement aims not only to strengthen economic cooperation, but also to increase the security of supplies of semiconductors, which are crucial for the American technology industry.
Expansion of factories in Arizona and new customs relief
One of the main beneficiaries of the agreement is Taiwan Semiconductor Manufacturing (TSMC), a world leader in chip production. TSMC already has plants in Arizona, where it has invested $40 billion. in the production of integrated circuits for giants such as Apple or Nvidia.
As revealed by US Secretary of Commerce Howard Lutnick in an interview with CNBC, the company purchased another hundreds of acres of land to further expand its production capacity. Lutnick emphasized that the decision to increase investments in the US is a strategic step that strengthens the position of the American semiconductor industry.
“They just bought hundreds of acres of land adjacent to their property,” Lutnick said.
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Under the terms of the agreement, Taiwanese chip companies will be able to import 2.5 times their production capacity to the U.S. while building new factories without paying tariffs. After the investment is completed, this limit will be reduced to 1.5 times the production capacity.
New rules of the game for Taiwan's technology sector
The agreement also introduces strict regulations for companies that choose not to produce in the US. Howard Lutnick warned that Taiwanese companies producing chips outside the United States could face tariffs of as much as 100 percent.
“That's what they'll get if they don't produce in America. The tariff will probably be 100 percent.” – noted the Secretary of Commerce.
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The goal of this policy is to transfer 40 percent. Taiwan's semiconductor supply chain to the US, which is expected to increase America's self-sufficiency in the production of cutting-edge integrated circuits. This is particularly important in the context of growing geopolitical tensions and concerns about a potential Chinese invasion of Taiwan.
Semiconductors as the key to geopolitical competition
The US administration has given priority to the development of domestic production of semiconductors, which are the foundation of artificial intelligence technologies, modern electronic devices and defense systems. As US officials have pointed out, a possible loss of access to chips produced by TSMC could have disastrous consequences for the US economy.
— We intend to take over all of this to become self-sufficient in semiconductor production – Lutnick emphasized.
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The new trade agreement with Taiwan is a step towards realizing this vision. Thanks to it, the United States not only secures its economic interests, but also strengthens its position in the global competition for dominance in the technology sector.
