The Trump administration has announced a major trade agreement with Taiwan aimed at strengthening U.S. semiconductor manufacturing and reducing reliance on foreign supply chains. Under the deal, announced by the U.S. Department of Commerce, Taiwanese semiconductor and technology companies have committed to investing $250 billion directly into the U.S. semiconductor industry. The funds will support semiconductor production, energy infrastructure, and artificial intelligence innovation. In addition, Taiwan will provide $250 billion in credit guarantees to facilitate further investments from Taiwanese tech and semiconductor firms into the United States. The timeline for these investments has not been specified. In return, the United States will invest in Taiwan’s semiconductor, defense, AI, telecommunications, and biotechnology sectors. However, the exact amount of U.S. investment was not disclosed in the press release. The announcement comes the day after the Trump administration issued a proclamation reaffirming its goal to bring semiconductor manufacturing back to American soil. The proclamation acknowledged that progress will be gradual, noting that only about 10% of global semiconductors are currently produced in the United States. “This dependence on foreign supply chains is a significant economic and national security risk,” the proclamation stated. “Given the foundational role that semiconductors play in the modern economy and national defense, a disruption of import-reliant supply chains could strain the United States’ industrial and military capabilities.” The proclamation also introduced a 25% tariff on certain advanced AI chips. It further indicated that additional semiconductor tariffs could be imposed once ongoing trade negotiations with other countries—including the newly announced deal with Taiwan—are finalized.