Taiwan aims to be strategic AI partner in US tariff deal

TAIPEI, Jan 16 (Reuters): Taiwan aims to become a close strategic partner with the United States in the area of artificial intelligence (AI) after striking a deal to cut tariffs and boost its investment in the country, Vice Premier Cheng Li-chiun said on Friday.
The administration of President Donald Trump has pushed the major producer of semiconductors for greater investment in the United States, specifically in turning out chips that power AI.
"In this negotiation, we promoted two-way Taiwan-US high-tech investment, hoping that in the future we can become close AI strategic partners," Cheng said in comments livestreamed from a press conference in Washington.
Cheng led the talks that clinched Thursday's trade deal, which cuts tariffs on many of Taiwan's exports, and directs new investments in the US technology industry, but it could also irritate China.
China regards democratically-ruled Taiwan as its own territory and strongly objects to high-level US-Taiwan exchanges. Taiwan rejects Beijing's sovereignty claims.
US Commerce Secretary Howard Lutnick said Taiwan companies would invest $250 billion to boost production of semiconductors, energy and artificial intelligence in the United States.
The figure includes $100 billion already committed by chipmaker TSMC, in 2025, with more to come, he added.
Taiwan will also guarantee an additional $250 billion in credit to facilitate further investment, the Trump administration said.
Cheng called the deal "win-win", adding that it would also encourage US investment in Taiwan. The United States is the island's most important international backer and arms supplier, despite the lack of formal diplomatic ties.
The investment plan is company-led, rather than driven by the government, and Taiwan companies will continue to invest at home, Cheng added.
"We believe this supply-chain cooperation is not 'move,' but 'build.' We expand our footprint in the US and support the US in building local supply chains, but even more so, it is an extension and expansion of Taiwan's technology industry."
Investments would also cover AI servers and energy, Taiwan Economy Minister Kung Ming-hsin told reporters in Taipei, adding that it was up to companies to reveal the chip-related amounts.
Taiwan's benchmark stock closed at a record high on Friday, boosted by strong TSMC fourth-quarter earnings and a favourable investor reaction to the tariff deal.
"Taiwan is the first country the US has publicly announced as receiving the most preferential treatment for chips and related products, highlighting that Washington views Taiwan as a key strategic partner in semiconductors," Taiwan Institute of Economic Research President Chang Chien-yi said.
In a statement, TSMC, the world's main producer of advanced AI chips welcomed the prospect of "robust" trade pacts between the United States and Taiwan, adding that all its investment decisions were based on market conditions and customer demand.
"The market demand for our advanced technology is very strong," it said.