Trump Administration Eyes Taiwan Deal on Chip Training
- Talks focus on investment, workforce skills, and tariff reductions
The administration of U.S. President Donald Trump is negotiating a deal that could see Taiwan commit new investment and training programs for American workers in semiconductor manufacturing and other advanced industries. Sources familiar with the matter said Taiwanese companies, including TSMC, would expand U.S. operations and send skilled staff to help train local employees. Taiwan’s exports to the United States currently face a 20% tariff, though semiconductors are exempt as Washington builds domestic capacity. Negotiations are ongoing, and details remain subject to change.
Workforce Training and Investment Plans
One source noted that Taiwan’s pledged investment would be smaller than commitments made by South Korea and Japan, which have promised $350 billion and $550 billion respectively. Taiwan’s contribution could include support for building science park infrastructure in the U.S., drawing on its own experience. The workforce training element of the deal has not been previously reported. White House spokesman Kush Desai said any reporting on trade deals remains speculative until formally announced by President Trump.
TSMC has faced challenges staffing its Arizona projects, with CEO C.C. Wei stating construction has taken twice as long as in Taiwan due to shortages of skilled workers and supply chain gaps. The company relocated half of its construction workforce from Texas, raising costs. Taiwan’s Office of Trade Negotiations said discussions with the U.S. continue under a “Taiwan model” of supply chain cooperation. Premier Cho Jung-tai confirmed that both sides are exchanging documents to finalize details.
Taiwan’s Semiconductor Model
Taiwan developed its science parks in the 1980s, creating a comprehensive supply chain for semiconductor production. Officials argue this model is difficult for other countries to replicate. Vice Premier Cheng Li-chiun expressed optimism that talks could lead to consensus on expanding U.S. investment. Taipei has emphasized that while it supports U.S. manufacturing, its most advanced technologies will remain in Taiwan.
Trump has acknowledged criticism of programs allowing skilled foreign workers but said they are necessary for success in advanced industries. At a recent investment forum, he referenced plans for a major chip plant with Taiwanese partners, stressing the need for training Americans in unfamiliar processes. Foxconn chairman Young Liu also indicated interest in building science parks in cooperation with the U.S. and other countries. Such initiatives could strengthen trade negotiations and supply chain resilience.
Tariffs and Geopolitical Context
Rising U.S. tariffs have prompted Taiwan to seek new agreements. At the APEC summit, Taiwan’s representative Lin Hsin-i discussed semiconductor clusters with U.S. Treasury Secretary Scott Bessent. Trump announced in August that semiconductor imports could face tariffs of up to 100%, though exemptions apply to companies manufacturing in the U.S. TSMC is investing $165 billion in Arizona facilities, while other firms such as GlobalWafers have announced new U.S. projects.
Any deal with Taiwan could provoke Beijing, which claims the island as part of China. President Xi Jinping reportedly raised the issue in a call with Trump, though the White House has not commented. Despite lacking formal diplomatic ties, the U.S. remains Taiwan’s most important international backer and security guarantor. The negotiations highlight both economic and geopolitical stakes in the global semiconductor industry.
Taiwan’s Hsinchu Science Park, established in 1980, is often called the “Silicon Valley of Asia.” It houses hundreds of companies and has become the backbone of Taiwan’s semiconductor dominance, providing a model now being considered for replication in the United States.
