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Taiwan President Defends US Investment Strategy Amid Trade Talks

Yahoo Finance •
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Taiwan's President Lai Ching-te said companies will decide where to invest the $250 billion pledged for U.S. projects, emphasizing that Taiwan's largest production capacity will remain at home. The statement comes after the Trump administration signed a reciprocal trade agreement with Taiwan, confirming a 15% U.S. tariff rate for imports from the island.

Lai stressed that Taiwan's national economic strategy positions the country to sell globally while maintaining its industrial base. The $250 billion investment commitment includes $100 billion already pledged by Taiwan Semiconductor Manufacturing Corp. for U.S. semiconductor, energy, and artificial intelligence projects. The government respects companies' voluntary investment decisions, Lai said, while noting that advanced manufacturing processes and research centers will stay in Taiwan.

The president's comments address concerns about potential hollowing out of Taiwan's industry as companies expand U.S. operations. TSMC, the world's leading advanced chip producer, is investing $165 billion in Arizona factories. While expanding U.S. manufacturing capacity, Lai emphasized that Taiwan's competitive advantages in research and development will remain intact. The investment strategy aims to balance global expansion with maintaining Taiwan's position as a semiconductor powerhouse.