"US Demands Taiwanese Investment and Worker Training in Tariff Negotiations"

Reuters reported on the 26th (local time), citing five sources, that the Donald Trump administration is pursuing an agreement that would require Taiwan to make new investments in advanced industries such as semiconductors and to train American workers.

If this agreement is reached, Taiwanese companies such as TSMC, the world's largest foundry (semiconductor contract manufacturer), are expected to expand production facilities in the United States by investing capital and manpower, and to provide training to American workers.

TSMC logo. Photo by AFP News Agency

Currently, a 20% tariff is imposed on Taiwanese exports to the United States, and Taiwan is negotiating with the Trump administration to reduce tariffs.

One source stated that Taiwan's total investment in the United States would be smaller than that of other competing Asian countries, and that support for building the Washington Science Park using Taiwan's expertise would also be included.

South Korea and Japan have each signed agreements to lower tariffs on their exports to the United States from 25% to 15%, and have pledged to invest 350 billion dollars and 550 billion dollars, respectively, in the United States.

However, the source noted that it is unclear when negotiations between Taiwan and the United States will be concluded or what the final agreement will contain.

According to Reuters, on the 26th, Taiwan's Premier Cho Jung-tai told reporters in Taipei that the two sides are at the stage of exchanging documents to finalize the details of the tariff negotiations with the United States.

Previously, on the 19th, President Trump mentioned the semiconductor plant TSMC is building in Arizona at the US-Saudi Investment Forum held in Washington, DC, stating that constructing and operating such a highly complex facility would require thousands of foreign specialists. He also said, "Those people will teach our people how to make computer chips, and in a short period, our people will become very good at it."

TSMC Chairman Mark Liu stated this January that the construction of the new plant in Arizona is taking at least twice as long as in Taiwan due to a shortage of skilled workers and supply chain gaps.