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Taiwan Vows $100bn US Chip Deal Will Not Harm Security

The Guardian

|

March 05, 2025

Taiwan's government has promised its most advanced semiconductor technology will not be moved to the US under a new $100bn (£79bn) deal signed between the chip maker TSMC and Donald Trump, amid accusations that it is allowing the island's national security to be undermined.

- Helen Davidson

The government said the deal must still go through government assessments, which would take into account the interests of the country as well as investors.

The surprise announcement on Monday by Trump and the chief executive of Taiwan Semiconductor Manufacturing Co, CC Wei, has prompted confusion in Taiwan, where the industry is crucial to its economy and national security.

On Monday, TSMC said it would increase its existing US investment by $100bn, building five new "cutting edge" facilities on US soil.

Trump said the deal meant TSMC would avoid the industrywide 25% tariffs amid efforts to bring more manufacturing to the US and assert US trade dominance over rivals and allies. Wei said the deal meant TSMC was "producing the most advanced chip on US soil".

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