Trump administration negotiating trade deal with Taiwan for semiconductor investment and US worker training, sources say, amid tariff reduction talks.
WASHINGTON/TAIPEI: The Trump administration is negotiating a trade deal that would commit Taiwan to fresh investment and training of US workers in semiconductor manufacturing.
According to five sources familiar with the matter, Taiwanese companies including TSMC would send capital and workers to expand US operations and train American workers.
Taiwan currently faces a 20% tariff on exports to the United States and has been seeking reduction through this comprehensive agreement.
Semiconductors remain exempt from tariffs while the US builds domestic manufacturing capacity.
One source indicated Taiwan’s pledged investment would be smaller than commitments from South Korea and Japan.
South Korea pledged $350 billion and Japan $550 billion in US investments under their respective tariff reduction deals.
The workforce training component of the Taiwan agreement has not been previously reported.
White House spokesman Kush Desai stated that reporting on potential trade deals remains speculation until announced by President Trump.
Trump has previously acknowledged that skilled foreign workers may be necessary to train Americans in advanced manufacturing facilities.
TSMC has encountered challenges finding appropriate workers for its US projects, according to CEO C.C. Wei.
Wei noted in January that building their Arizona factory took twice as long as in Taiwan due to skilled worker shortages.
Taiwan’s Office of Trade Negotiations confirmed continuing discussions about supply chain cooperation under a “Taiwan model.”
Taiwan Premier Cho Jung-tai revealed both sides are currently exchanging documents to finalize specific details.
He emphasized that Taiwan’s unique experience with science parks positions it uniquely for this US initiative.
Taiwan Vice Premier Cheng Li-chiun expressed optimism about reaching consensus on expanded US investment.
Trump recently acknowledged criticism of skilled foreign worker programs while defending their necessity.
He referenced opening “a big plant with your friend from Taiwan” during a US-Saudi investment forum speech.
The President emphasized that American workers need training in semiconductor manufacturing techniques.
Foxconn Chairman Young Liu confirmed the company is exploring science park collaborations with the US.
Rising Trump tariffs prompted the current negotiations between Washington and Taipei.
Taiwan’s APEC representative Lin Hsin-i discussed semiconductors with US Treasury Secretary Scott Bessent.
Trump announced 100% tariffs on semiconductor imports in August with exemptions for US manufacturers.
TSMC is investing $165 billion in Arizona chip factories while maintaining most production in Taiwan.
Any US-Taiwan agreement could provoke Beijing, which claims the island as Chinese territory.
Chinese President Xi Jinping recently told Trump that Taiwan’s “return to China” remains important.
The United States remains Taiwan’s most significant international supporter despite lacking formal diplomatic ties.
