Cabinet mum on possible U.S. tariff deal involving TSMC investment

Taipei, Jan. 13 (CNA) The Cabinet was tight-lipped Tuesday on a report saying that the United States had agreed to lower tariffs on goods it imports from Taiwan in exchange for Taiwan Semiconductor Manufacturing Co. (TSMC) building more chip foundries in the U.S.

The agreement would lower tariffs on Taiwanese goods to 15 percent, the same as for Japan and South Korea, which reached understandings on trade and investment with the U.S. in 2025, the New York Times reported Monday.

"As part of the deal, TSMC would also commit to building at least five more semiconductor facilities, or fabs, in Arizona," the NYT reported, citing unnamed sources.

Responding to the report, Cabinet spokesperson Michelle Lee (李慧芝) said only that Taiwan and the U.S. have already reached "broad consensus" on related issues, and are currently discussing the timing of a wrap-up meeting.

Any confirmed arrangements will be announced publicly, she said.

"The goals of Taiwan-U.S. tariff negotiations have consistently been to seek reductions in reciprocal tariffs, avoid tariff stacking, and secure preferential treatment under Section 232," Lee reiterated.

U.S. authorities are investigating whether semiconductors should be subject to "national security tariffs" under Section 232 of the Trade Expansion Act.

TSMC did not comment on the report but will likely address the issue at its investor conference on Thursday.

The Cabinet also declined to comment when contacted by CNA on whether its negotiators had factored in the Supreme Court's ongoing consideration of the constitutionality of Trump's arbitrary tariffs or how a ruling might affect the negotiations.

The court did not issue a ruling on the issue Jan. 9, contrary to some expectations, but has said it could deliver a ruling Wednesday.

TSMC currently has three fabs at various stages of development in Arizona under a previous US$65 billion investment commitment.

The first began high-volume production in the final quarter of 2024. The structure for the second fab was completed in 2025, with volume production targeted for 2028.

Ground was broken on a third fab in April 2025, with volume production targeted by the end of the decade, according to TSMC Arizona.

Early last year, TSMC pledged an additional US$100 billion in investment that would include another three fabs, but according to the NYT, the company has pledged as part of the trade talks to build at least five more fabs (instead of the four currently pledged, including the fab on which ground was broken last year).

The administration of President Donald Trump currently imposes a 20 percent tariff on Taiwanese goods, in addition to most-favored-nation tariffs, but has not levied tariffs on semiconductors exported from Taiwan, subject to the pending Section 232 investigation.

The Times cited unnamed Trump administration officials as saying countries that invest in the U.S. would be exempt from Section 232 tariffs, but said that it remained unclear how such a scheme would work.