President Donald Trump is working on a new trade agreement with Taiwan that could bring more semiconductor jobs and training to the United States, according to people familiar with the talks.
The deal would encourage major Taiwanese chipmakers, including TSMC, to expand their US operations and help train American workers in high-tech manufacturing.
In return, the administration is considering lowering a 20% tariff currently applied to many Taiwanese goods, FoxBusiness reported.
The White House has not confirmed details of the deal. Spokesman Kush Desai said only, "Until announced by President Trump, reporting about potential trade deals is speculation."
But officials involved in the discussions say both sides are working quickly, especially as Taiwan looks for ways to support US chip production while keeping its most advanced research at home.
The talks come at a tense moment. Recent comments from Japan's prime minister defending Taiwan's independence angered China, which claims Taiwan as its territory.
China's response included warnings, a threat from a consul general that was later deleted, and a message from President Xi Jinping to Trump stressing that Taiwan's "return to China" is part of the post-war world order.
NEW: The Trump administration is negotiating a deal where Taiwan—especially TSMC—would invest more in U.S. chip facilities and help train American workers.
— Clash Report (@clashreport) November 26, 2025
In return, Taiwan hopes to get its 20% U.S. tariff reduced.
Source: Reuters pic.twitter.com/UJh5uGr6qi
US Leans on Taiwan as Chip Tensions Rise
Even with rising tensions, the United States continues to rely on Taiwan for semiconductors, which power everything from phones to cars.
According to Reuters, Taiwan's TSMC—already building factories in Arizona—has struggled to find skilled workers in the US CEO CC Wei said earlier that building a factory in America takes "at least twice as long" due to worker shortages and supply chain gaps.
That challenge is one reason Taiwan may send more staff to train US employees if the deal goes through.
Taiwan has a long history of building science parks where chip companies can grow together. Leaders in Taipei say they want to help the US create similar spaces.
Taiwan's premier confirmed this week that both sides are exchanging documents and working out details, though no timeline has been set.
Trump has argued that allowing skilled foreign workers to help launch US chip plants is necessary.
He recently said, "Our people have to be taught," pointing to the need for experts to help start new factories and keep them running.
Originally published on vcpost.com
