Historic Semiconductor Deal: Taiwan and USA Forge New Path Amid Geopolitical Currents

The USA and Taiwan have reached a trade agreement that they are calling historic. As part of this agreement, TSMC, together with the Taiwanese government, plans to invest $500 billion in the American semiconductor manufacturing industry. The administration of the U.S. president announced a tariff agreement with Taiwan, which involves a total investment package of $500 billion, including previously committed obligations to TSMC of $165 billion. In total, TSMC will spend $250 billion, while the remaining amount will be contributed by the Taiwanese government.

Importantly, despite such enormous sums, the agreement does not entail the launch of TSMC’s most advanced chipmaking process in the United States. At the moment, this is the 2nm process, and such factories will only be in Taiwan at least until the company masters the next-generation process. Against this backdrop, Samsung’s 2nm GAA factory, which will be launched very soon, remains at an advantage.

This massive agreement, a reflection of strategic cooperation in 2026, underscores the crucial role semiconductors play in global supply chains. With geopolitical tensions in the Indo-Pacific, this deal could redefine trade relationships and technological power balances. Moreover, the evolution of AI applications and the Internet of Things (IoT) demands cutting-edge semiconductor technologies, shaping industry trends.

As TSMC asserts its dominance by balancing technology advancements and international presence, the effects on global market dynamics are profound. Particularly significant are China’s interests in Taiwan’s semiconductor industry, which remain a pivotal point of discussion. The global semiconductor landscape, integral for consumer electronics and military hardware, continues to be a strategic chessboard.