The proposed agreement could expand semiconductor training in the United States while increasing Taiwanese industry participation in advanced manufacturing.
Washington, D.C. / Taipei, 26 November 2025 – The United States and Taiwan are in discussions on a potential trade arrangement that would support new investment in advanced manufacturing and increase workforce training opportunities for U.S. workers. According to sources familiar with the negotiations, the potential agreement would involve Taiwanese companies, including major semiconductor manufacturer TSMC, expanding their operations in the United States while helping train workers in specialized production skills needed for high-tech facilities.
Taiwan’s exports to the United States currently face a 20 percent tariff, and talks have included the possibility of lowering that rate as part of a broader agreement. Semiconductors, which are essential for artificial intelligence systems, computing hardware, automobiles, telecommunications equipment, and consumer electronics, are currently excluded from tariffs as the United States builds more domestic chip production capacity.
The discussions come as countries such as South Korea and Japan have already committed large-scale investments in the United States in exchange for reduced tariffs on their goods. While the potential Taiwan deal is expected to involve a smaller investment level, sources suggest it may include support for developing science park infrastructure and technology ecosystems modeled after Taiwan’s successful semiconductor industry clusters.
Workforce training is a key topic in the discussions, reflecting the challenges companies have faced when staffing advanced semiconductor fabrication plants in the United States. TSMC has previously noted that its Arizona manufacturing site required longer development timelines due to shortages in specialized labor, supply chain readiness, and support capabilities.
Taiwanese industry representatives have stated that the country’s experience in developing integrated semiconductor production hubs may help support U.S. training goals. Taiwan’s science park model, developed beginning in the 1980s, has played a major role in building the global semiconductor supply chain.
Officials familiar with the ongoing talks note that a final agreement has not yet been completed and that terms may continue to evolve. Taiwan’s leaders have expressed optimism about reaching a consensus and expanding investment, while emphasizing that leading-edge semiconductor research and production will remain in Taiwan.
Additional Taiwanese companies, including GlobalWafers and suppliers connected to major computing manufacturers, have also announced interest in expanding U.S. operations to support semiconductor and advanced technology development.
Industry analysts note that any agreement involving investment, workforce development, and advanced manufacturing cooperation could influence global technology supply chains. The semiconductor sector continues to experience strong demand due to rapid growth in artificial intelligence, cloud computing, electric vehicles, data centers, and advanced automation.
