Various reports say the US and Taiwan have clinched a trade pact to cut tariffs to 15% in exchange for a $500 billion Taiwanese commitment. For the money, half of it will be direct investment in US manufacturing and half of it credit guarantees for other investments in the US.
The deal is poised to be signed today and would cut tariffs from 20%.
A report says that TSMC and other chipmakers have committed to $250 billion in chip investments and credit guarantees, so the bulk of this is investments in FABs in Arizona. As for chip exports, some kind of quota system has been established, bringing tariffs down.
