Taiwan Chip Deal Valued at $500 Billion, Says US Commerce Secretary Lutnick

• The deal splits investment equally: $250 billion from private Taiwanese companies and $250 billion from Taiwan's government
• The agreement focuses specifically on expanding semiconductor chip manufacturing capacity in the U.S.
• Commerce Secretary Lutnick announced the deal details in an interview with CNBC

Summary: Taiwan Chip Deal Valued at $500 Billion

Key Details:

U.S. Commerce Secretary Howard Lutnick announced a landmark trade agreement with Taiwan on January 15, 2026, focused on expanding semiconductor manufacturing in the United States. The deal carries a total valuation of $500 billion, split equally between private and public sector commitments.

Financial Breakdown:

• Taiwanese companies: $250 billion investment
• Taiwan government: $250 billion investment
• Combined total: $500 billion in semiconductor manufacturing expansion

Market Implications:

This agreement represents one of the largest foreign investment commitments in U.S. semiconductor manufacturing history. The deal addresses ongoing concerns about supply chain resilience and domestic chip production capacity, critical issues following global semiconductor shortages in recent years.

The investment is expected to significantly boost U.S. semiconductor manufacturing infrastructure, reducing dependence on overseas production while strengthening the U.S.-Taiwan economic partnership. This strategic move aligns with broader efforts to secure supply chains for critical technologies amid growing geopolitical tensions.

Sector Impact:

The semiconductor industry will see substantial capacity expansion on U.S. soil, potentially creating thousands of jobs and establishing new fabrication facilities. This could benefit American technology companies reliant on chip supplies and position the U.S. more competitively against other major semiconductor-producing nations.

The announcement comes as global demand for advanced chips continues to surge, driven by artificial intelligence, electric vehicles, and consumer electronics. Taiwan, home to leading chipmaker TSMC, controls a significant portion of global semiconductor manufacturing capacity, making this partnership strategically vital for U.S. technology leadership.