US media reports indicate that Taiwan and the United States have reached a trade pact that would lower US tariffs on Taiwanese exports to 15 percent in exchange for investments by the Taiwan Semiconductor Manufacturing Company (TSMC). This agreement follows months of negotiations and aims to achieve reciprocal tariff reductions without stacking tariffs. TSMC, the world’s largest chipmaker, plans to build at least four new production facilities in Arizona, with a total investment of $165bn in the US. The deal comes amid concerns about China’s potential blockade of Taiwan, highlighting the strategic importance of TSMC’s expansion outside of Taiwan.
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