Taipei [Taiwan], January 13 (ANI): The Cabinet was tight-lipped Tuesday on a report saying that the United States had agreed to decrease tariffs on items it imports from Taiwan in alternate for Taiwan Semiconductor Manufacturing Co. (TSMC) constructing extra chip foundries within the US, Focus Taiwan reported.
The settlement would decrease tariffs on Taiwanese items to fifteen per cent, the identical as for Japan and South Korea, which reached understandings on commerce and funding with the US in 2025, the news report famous, citing a New York Times article.
‘As a part of the deal, TSMC would additionally decide to constructing at the very least 5 extra semiconductor amenities, or fabs, in Arizona,’ the NYT reported, citing unnamed sources.
Responding to the report, Cabinet spokesperson Michelle Lee mentioned solely that Taiwan and the US have already reached ‘broad consensus’ on associated points, and are at present discussing the timing of a wrap-up assembly.
Any confirmed preparations will likely be introduced publicly, she mentioned.
‘The objectives of Taiwan-US tariff negotiations have constantly been to hunt reductions in reciprocal tariffs, keep away from tariff stacking, and safe preferential therapy underneath Section 232,’ Lee reiterated, as per the report.
US authorities are reportedly investigating whether or not semiconductors ought to be topic to ‘nationwide safety tariffs’ underneath Section 232 of the Trade Expansion Act.
TSMC didn’t touch upon the report however will doubtless deal with the difficulty at its investor convention on Thursday, as per the report.
The Cabinet additionally declined to remark when contacted by CNA on whether or not its negotiators had factored within the Supreme Court’s ongoing consideration of the constitutionality of Trump’s arbitrary tariffs or how a ruling would possibly have an effect on the negotiations.
The court docket didn’t problem a ruling on Jan. 9, opposite to some expectations, however has mentioned it might ship a ruling on Wednesday, in keeping with a Focus Taiwan report.
TSMC at present has three fabs in Arizona at numerous phases of improvement underneath a previous USD 65 billion funding dedication.
The first started high-volume manufacturing within the last quarter of 2024. The second fab’s construction was accomplished in 2025, with quantity manufacturing focused for 2028.
Ground was damaged on a 3rd fab in April 2025, with quantity manufacturing focused by the top of the last decade, in keeping with TSMC Arizona.
Early final 12 months, TSMC pledged an extra USD 100 billion in funding that would come with one other three fabs, however in keeping with the NYT, the corporate has pledged as a part of the commerce talks to construct at the very least 5 extra fabs (as a substitute of the 4 at present pledged, together with the fab on which floor was damaged final 12 months).
The administration of President Donald Trump at present imposes a 20 per cent tariff on Taiwanese items, along with most-favoured-nation tariffs, however has not levied tariffs on semiconductors exported from Taiwan, pending the Section 232 investigation.
The Times cited unnamed Trump administration officers as saying nations that spend money on the US could be exempt from Section 232 tariffs, however mentioned that it remained unclear how such a scheme would work. (ANI)