TAIPEI: Taiwan said Friday it will remain the world’s “most important” producer of AI semiconductor chips, after reaching a trade deal with the United States that will see Taiwanese companies increase investment on US soil.
“Based on current planning, Taiwan will still remain the world’s most important producer of AI semiconductors, not only for Taiwanese companies, but globally,” Economic Affairs Minister Kung Ming-hsin said, with production capacity split about 85-15 between Taiwan and the United States by 2030 and 80-20 by 2036.
The announcement follows a landmark trade agreement with the United States aimed at cementing a “close AI strategic partner” relationship between the two nations.
Taiwan expects to maintain its global dominance even as it expands its international footprint. Officials say current plans target a domestic-to-international production capacity split of 85-15 by 2030, and 80-20 by 2036.
Under the agreement, Taiwanese companies have committed $250 billion in investment in the United States to increase production of semiconductors, AI, and energy technologies. This includes $100 billion previously committed by Taiwan Semiconductor Manufacturing Company (TSMC) in 2025 for Arizona-based plants, alongside an additional $250 billion in credit guaranteed by Taiwan to facilitate further investments.
TSMC, the world’s largest contract chipmaker, reported a 35 percent jump in net profit for the final quarter of 2025, driven by what the company described as “near-insatiable” demand for AI chips. To maintain its lead, TSMC plans to raise its capital expenditure budget to between $52 billion and $56 billion for 2026, up from $40 billion in 2025.
Taiwan currently produces over 60 percent of the world’s semiconductors and more than 90 percent of the most advanced chips needed for high-end AI applications. Despite growing geopolitical pressure and the expansion of U.S. manufacturing, officials emphasized that the “most advanced” production technologies will remain on the island.
