US President Donald Trump’s administration is negotiating a deal that could commit Taiwan to fresh investment and training of US workers in semiconductor manufacturing and other advanced industries, five people familiar with the matter said.
Under the arrangement, Taiwanese companies, including Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, would send new capital and workers to expand their US operations and train US workers, the sources said.
Taiwan’s exports to the US are subject to a 20 percent tariff and Taipei has been in talks to reduce that figure as part of an overarching deal with Washington.
Photo: screen grab from the Taiwan Semiconductor Manufacturing Co Web site
Semiconductors, vital for all kinds of high-tech products, are exempt from tariffs while the US builds domestic capacity.
One of the people said that the total US investment to be pledged by Taiwan would be smaller than that of its main regional economic rivals, and would include support to help Washington build science park infrastructure drawing on Taiwanese know-how.
The person and others spoke on condition of anonymity because of the sensitivity of the matter.
South Korea and Japan have pledged a total of US$350 billion and US$550 billion in investment in the US respectively, under deals to trim US tariffs on most of their goods to 15 percent from 25 percent.
It was unclear when the Taiwan deal would close or what specifics would make it into the final agreement, the people said.
They cautioned that any deal terms could change until they are finalized in negotiations.
The workforce training aspect of the deal has not previously been reported.
“Until announced by President Trump, reporting about potential trade deals is speculation,” White House spokesman Kush Desai said.
Trump has previously said some skilled foreign workers might be necessary to train Americans in state-of-the-art factories.
TSMC, which declined to comment on the trade talks, has struggled to find the right workers for its US projects.
TSMC chief executive officer and chairman C.C. Wei (魏哲家) in January said that building the new factory in Arizona has taken at least twice as long as in Taiwan, citing a shortage of skilled workers and gaps in the supply chain.
Taiwan’s Office of Trade Negotiations in a statement said that its team was continuing to discuss supply chain cooperation with the US under a “Taiwan model.”
Speaking to reporters in Taipei yesterday, Premier Cho Jung-tai (卓榮泰) said the two sides are at the stage of exchanging documents to firm up certain details.
“It is very difficult for other countries to do this kind of work, because only we have this concept, practice, and track record of service parks, which allows us to undertake this kind of initiative in the United States,” he said.
While Taipei has been keen to show its commitment to Trump’s call to boost US manufacturing, it has also said the most advanced semiconductor technologies and research would remain in Taiwan.
Taiwan’s representative to the APEC summit, Lin Hsin-i (林信義), earlier this month said that he and US Secretary of the Treasury Scott Bessent had discussed supply chains and semiconductors during a meeting on the sidelines of the event in South Korea.
Lin said Bessent had been keen to hear about Taiwan’s experience in building its semiconductor clusters.
Trump in August said that the US would impose a tariff of about 100 percent on imports of semiconductors, but exempted companies that are manufacturing in the US or have committed to do so, which includes TSMC, although US officials are privately saying that they might not levy them soon, Reuters reported this month.
TSMC, whose business is surging on strong demand for artificial intelligence applications, is investing US$165 billion to build chip factories in Arizona, though the bulk of its production would remain in Taiwan.
PROCEDURE: Although there is already a cross-strait agreement in place for the extradition of criminals, ample notice is meant to be given to the other side first Ten Taiwanese who were involved in fraud-related crimes in China were extradited back to Taiwan via Kinmen County on Wednesday, four of whom are convicted fraudsters in Taiwan. The 10 people arrived via a ferry operating between Xiamen and Kinmen, also known as the “small three links.” The Kinmen County Prosecutors’ Office yesterday said that four of the 10 extradited people were convicted in Taiwan for committing fraud and contravening the Money Laundering Control Act (洗錢防制法), and were on the wanted list. They were immediately arrested upon arrival and sent to Kinmen Prison to serve their sentences following brief questioning, the office said.
‘REGRETTABLE’: Travelers reported that Seoul’s online arrival card system lists Taiwan as ‘China (Taiwan),’ the Ministry of Foreign Affairs said The Ministry of Foreign Affairs yesterday urged South Korea to correct the way Taiwan is listed in its newly launched e-Arrival card system, saying the current designation downgrades the nation’s status. South Korea rolled out the online system on Feb. 24 to gradually replace paper arrival cards, which it plans to phase out by next year. Travelers must complete the electronic form up to 72 hours before entering the country. The ministry said it has received multiple complaints from Taiwanese travelers saying that the system lists Taiwan as “China (Taiwan)” in dropdown menus for both “place of departure” and “next
A small number of Taiwanese this year lost their citizenship rights after traveling in China and obtaining a one-time Chinese passport to cross the border into Russia, a source said today. The people signed up through Chinese travel agencies for tours of neighboring Russia with companies claiming they could obtain Russian visas and fast-track border clearance, the source said on condition of anonymity. The travelers were actually issued one-time-use Chinese passports, they said. Taiwanese are prohibited from holding a Chinese passport or household registration. If found to have a Chinese ID, they may lose their resident status under Article 9-1
VIGILANT: Enterovirus activity remains in the epidemic phase, with the CDC urging caregivers of infected children to be on the lookout for signs of severe illness Influenza activity is rising in neighboring countries, and, with temperatures forecast to drop this week, flu cases are expected to increase in the next two weeks, the Centers for Disease Control (CDC) said yesterday. Hospitals reported 87,162 visits for flu-like illnesses between Nov. 23 and Saturday, which remained about the same level as the previous week, but nine deaths and 24 cases with serious flu complications were also confirmed last week, CDC Epidemic Intelligence Center Director Guo Hung-wei (郭宏偉) said. Flu activity reached a peak in late September before declining for eight consecutive weeks, CDC Deputy Director-General and spokesman Lin Min-cheng (林明誠)
RSS