The U.S. and Taiwan reached a trade deal on Thursday under which Taiwanese companies will invest $250 billion to boost production of semiconductors, energy and artificial intelligence in the United States.

The United States agreed to lower tariffs on Taiwanese goods from 20 to 15 percent, while Taiwan says it will invest in more chip manufacturing in the U.S.

Taiwan has struck a significant trade deal with the US under which Taiwanese companies will invest $250 billion, aiming to boost the production of chips, semiconductors, AI and energy in the

Trump initially set the tariff at 32% on Taiwanese goods but later changed it to 20%. The new agreement slashes the tariff rate to 15%, the same as levied on other U.S. trading partners in the Asia-Pacific region such as Japan and South Korea.

Chip giant TSMC plans to build a ‘gigafab cluster’ in the US, with Taiwan committing to US$500 billion investment under a new trade deal.

TSMC stock inches higher as the semiconductor behemoth reports market-beating Q4 earnings. A Counterpoint Research analyst explains what will drive TSM shares higher in 2026.

Shares in Taiwan Semiconductor Manufacturing Company ( NYSE:TSM ), often referred to as TSMC, opened 4.8% higher on 15 January following an earnings beat and uncharacteristically bullish outlook for the artificial intelligence (AI) sector.

The U.S. and Taiwan reached a trade deal on Thursday under which Taiwanese companies will invest $250 billion to boost production of semiconductors, energy and artificial intelligence in the United States.

In dollars and cents, TSMC guided investors to expect Q1 revenue of $34.6 billion to $35.8 billion, implying sequential growth of up to 9%. Management says profit margins should be in the 63% to 65% range (gross) and 54% to 56% (operating).