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The United States and Taiwan are anticipated to soon conclude a trade deal focused on cutting mutual tariffs to 15% and increasing semiconductor investments in the U.S.

The New York Times (NYT) reported on the 12th (local time), referencing several government sources, that the United States is expected to announce as early as this month a deal aimed at reducing mutual tariffs on Taiwan from 20% to 15%, matching the rates applied to South Korea and Japan. As part of this agreement, it is reportedly stated that Taiwan Semiconductor Manufacturing Company (TSMC) will commit to building at least five more semiconductor fabrication plants (fabs) in Arizona. TSMC started constructing its Arizona facilities in 2020 and has completed one plant so far. The second facility is set to begin operations in 2028, with plans for four additional plants previously announced. This new discussion adds at least five more plants to the existing commitments.

In support of this growth, TSMC acquired 3.64 million square meters (㎡) of land next to its current Arizona location on the 7th for $197 million (around 290 billion South Korean won). The area will be utilized for constructing additional buildings.

The exact sum and schedule of Taiwan’s investments in the United States have not been clearly defined. Nevertheless, the Wall Street Journal (WSJ) stated that Taiwan is expected to commit more than $300 billion in direct investments to the U.S. This encompasses TSMC’s previously announced $165 billion investment from last year, along with intentions to increase it further. Previously, South Korea achieved a 15% reciprocal tariff rate by pledging $350 billion in U.S. investments, while Japan committed to $550 billion.