The United States may have an eager partner in Taiwan when it comes to artificial intelligence (AI). 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.
“In this negotiation, we promoted two-way Taiwan–U.S. 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 U.S. technology industry, but it could also irritate China.
“We believe this supply-chain cooperation is not ‘move,’ but ‘build.’ We expand our footprint in the U.S. and support the U.S. in building local supply chains, but even more so, it is an extension and expansion of Taiwan’s technology industry.”
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“Taiwan is the first country the U.S. 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 told Reuters.
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. “We continue to invest in Taiwan and expand overseas.”
The United States has supposedly agreed to reduce tariffs on a range of Taiwanese exports, improving Taiwan’s access to the U.S. market.
Once signed, the deal will need to be ratified by Taiwan’s parliament, where the opposition has the most seats and which has expressed concern about the “hollowing out” of the crucial chip industry under a U.S. trade deal.
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Beyond the immediate trade provisions, the agreement reflects a shared strategic interest in strengthening high-tech ecosystems, securing critical supply chains, and maintaining leadership in advanced technologies. For Washington, closer collaboration with Taiwan supports efforts to diversify and reinforce domestic production capacity in sensitive sectors. For Taipei, deeper engagement offers opportunities to sustain its global relevance in cutting-edge innovation while accessing a larger market.
Domestic political scrutiny in Taiwan underscores concerns about overreliance on overseas expansion and the long-term impact on its core industries. Ultimately, the significance of the agreement lies less in its immediate economic effects and more in the signal it sends. It suggests a long-term commitment to cooperation in advanced technology and innovation, positioning AI as a shared priority.
If implemented effectively, the partnership could reinforce technological resilience on both sides while influencing how global standards, supply chains, and competitive dynamics in AI and semiconductors evolve in the years ahead.