The impending trade agreement between Taiwan and the United States is set to reshape the semiconductor landscape, with Taiwan planning to invest around $250 billion in US technology and energy projects. This investment will primarily target silicon production for artificial intelligence and energy projects supporting large chip fabs and AI data centers.
Central to this initiative is TSMC, the foremost advanced semiconductor manufacturer globally, which plays a crucial role in supplying CPUs, GPUs, and AI accelerators necessary for various computing applications. The strategic choices regarding the establishment of semiconductor fabrication plants will greatly impact the pricing and availability of these technologies.
While the agreement is politically sensitive and not yet finalized, it reflects Taiwan’s strategy to enhance its technology collaboration with the US, fostering a stronger supply chain. Additionally, Taiwan is prepared to provide up to another $250 billion in credit guarantees to incentivize US investment in its tech sector. This mutual commitment aims to create a beneficial ecosystem for both nations.