Taiwan to invest $250 billion in US chip manufacturing
Under a new deal, Taiwanese companies will invest $250 billion directly in the US. Only 10% of semiconductors are made in the US today.
On January 15, the US and Taiwan announced a major deal on semiconductors.
What does the deal say?
- Taiwanese chip and tech companies will invest $250 billion directly in the US, across semiconductors, energy and AI
- Taiwan will add another $250 billion in credit guarantees; the time frame is unclear
- The US will invest in Taiwan's semiconductor, defence, AI, telecom and biotech sectors, though no dollar figure was given
Why it matters
- According to the US proclamation, only 10% of semiconductors are produced in the US
- Taiwan makes more than half of the world's chips (TSMC builds chips for the iPhone and Nvidia)
- The proclamation says: "This dependence on foreign supply chains is a significant economic and national security risk."
What it means for us
Over the long term, the deal could affect the prices of phones and computers, since chips are at the heart of every device.
Founder and editor-in-chief of Kurd Developers. Phone and tech news on YouTube, Instagram and TikTok.
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