# The US lowered Taiwan's tariffs in exchange for a massive domestic chipmaking promise.

*semiconductor · news · 2026-01-15 · The Verge*

## Key points

- Taiwanese tech firms will invest $250 billion in US chipmaking facilities with $250 billion in government credit.
- US tariffs on Taiwanese goods will drop from 20 to 15 percent under this agreement.
- Taiwanese factories in the US can import up to 2.5 times planned capacity tariff-free during construction.
- TSMC has acquired additional land in Arizona, planning up to six semiconductor fabs for US expansion.
- US will eliminate reciprocal tariffs on pharmaceuticals, aircraft components, and certain natural resources from Taiwan.

**Companies:** Taiwan Semiconductor Manufacturing Co.
**Countries:** United States, Taiwan

[Read the full story on The Verge](https://www.theverge.com/news/862938/us-taiwan-chipmaking-deal-250-billion-investment-tsmc)

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