Washington/Taipei – The Trump administration is reportedly negotiating a trade deal with Taiwan that could expand Taiwanese investment in the U.S. and train American workers in semiconductor manufacturing and advanced industries, according to multiple sources familiar with the discussions.

The agreement could involve Taiwanese companies like TSMC bringing capital, equipment, and personnel to the U.S. to develop high-tech manufacturing facilities and science parks while training U.S. workers to operate them. Semiconductors, critical for AI, computing, and other industries, are currently exempt from tariffs, but Taiwan has been seeking reductions on other goods exported to the U.S., currently subject to 20% tariffs.

“It is very difficult for other countries to do this kind of work, because only we have this concept, practice, and track record of service parks,” said Taiwan Premier Cho Jung-tai, emphasizing Taiwan’s experience in building semiconductor clusters.

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Key Details of the Taiwan-U.S. Initiative

• Investment and Training: Taiwanese companies would commit capital and personnel to U.S. facilities, teaching American workers advanced manufacturing techniques.
• Scope of Investment: While smaller than investments from South Korea ($350B) and Japan ($550B), Taiwan’s contribution would support U.S. science park infrastructure and semiconductor production.
• Semiconductor Focus: TSMC is expanding in Arizona, investing $165B, though most production will remain in Taiwan. Workforce shortages have slowed U.S. factory development.
• Trade Negotiations: Talks aim to reduce tariffs on Taiwanese exports and facilitate supply chain cooperation, referred to as the “Taiwan model.”
• Other Taiwanese Companies: Foxconn, GlobalWafers, and other tech firms are exploring investments in the U.S. under this framework.

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Strategic and Geopolitical Context

The initiative strengthens the U.S.-Taiwan economic and technological partnership while addressing domestic workforce gaps in high-tech manufacturing. It could also heighten tensions with Beijing, which views Taiwan as part of China.

Chinese President Xi Jinping reportedly raised Taiwan in a call with Trump, reaffirming Beijing’s claim and emphasizing the sensitivity of any U.S.-Taiwan agreements.

U.S. officials note that skilled foreign workers may be necessary to train American workers on state-of-the-art technology, a measure Trump has defended as crucial for maintaining global leadership in key industries.