The US hopes Taiwan will increase investment, Lai Ching-te: Investments will only be made if the incentives are in place.

U.S. Secretary of Commerce Lutnick (Howard Lutnick) stated in a recent interview that the U.S. is in negotiations with Taiwan, hoping that Taiwan will make a “large-scale” investment commitment to the United States. Meanwhile, Taiwan President Lai Ching-te stressed that Taiwan supports the U.S. effort for reindustrialization and the return of semiconductor manufacturing, but in order for these plans to materialize, the U.S. must strengthen its support in areas such as land, water and electricity, talent, and investment incentives.

U.S.-Taiwan negotiations continue; U.S. hopes to bring 50% of chip manufacturing back home

Lutnick stated that the U.S. and Taiwan are currently in negotiations, and the core goal of the Trump administration is to bring more semiconductor manufacturing back to the U.S. He stated that he hopes 40% to 50% of future U.S. chip demand will be supplied by domestic production, which is a key part of America’s reindustrialization initiative.

(U.S. Secretary of Commerce Lutnick: U.S.-Taiwan chip capacity must be split 50-50 to secure an anti-China defense line)

Taiwan supports U.S. policy, but U.S. incentives still need improvement

In response, Taiwan President Lai Ching-te emphasized in a recorded interview at The New York Times DealBook Summit that Taiwan supports the Trump administration’s push for U.S. reindustrialization, including reshoring semiconductor capacity.

However, he also pointed out that to achieve the 40%-50% domestic supply target, the U.S. must provide sufficient guarantees in “land acquisition, water and electricity supply, talent training, and investment incentives.” Lai said that as long as the U.S. puts these measures in place, the goal will be easier to achieve.

Investment in the U.S. has reached an impressive scale, with even greater funding possible

When discussing the scale of possible Taiwanese investment, Lutnick mentioned that TSMC has already increased its investment in the U.S. by $100 billion, bringing the total to $165 billion. Micron (Micron) and Texas Instruments (TI) have also increased their investments.

He pointed out that total semiconductor investment in the U.S. is now close to $300 billion, and if a new agreement is reached between the U.S. and Taiwan, the amount could be even greater. However, he did not specify whether TSMC’s existing investment has been included in the current negotiations.

U.S.-Taiwan cooperation continues to deepen, Taiwan Strait security remains a focus

President Lai Ching-te also mentioned that he hopes U.S.-Taiwan tariff negotiations will help reduce the U.S. trade deficit, deepen economic and trade cooperation, and strengthen bilateral industry integration. He has recently increased Taiwan’s visibility in U.S. media, including announcing an additional $40 billion national defense budget and pledging to increase U.S. energy and agricultural product purchases.

On the other hand, U.S. Treasury Secretary Bessent (Scott Bessent) said that U.S.-Taiwan relations have not changed and refused to answer whether the U.S. would defend Taiwan if China used force. However, he also emphasized that the greatest risk to the global economy is disruption in Taiwan’s chip supply chain, and the U.S. push to reshore chip production is about de-risking, not a change in policy.

(U.S. Treasury Secretary: Chip subsidies converted into Intel equity, semiconductor capacity must reduce dependence on Taiwan)

This article U.S. Hopes Taiwan Increases Investment, Lai Ching-te: Investment Incentives Must Be in Place First originally appeared on Chain News ABMedia.