Taiwan firms plan $20B more in US investment amid AI demand

Taiwan's economy minister said Wednesday that Taiwanese companies plan to invest an additional $20 billion in the United States, fueled by surging demand for artificial intelligence and advanced semiconductors. The announcement, made at the opening of the SEMICON Taiwan 2026 trade show in Taipei, was welcomed by a senior U.S. Commerce Department official overseeing the CHIPS Act.kelo+1

A Growing Wave of Capital

Economy Minister Kung Ming-hsin said the ministry had conducted a fresh assessment since May's SelectUSA Investment Summit to identify which firms, beyond chipmaking giant TSMC Taiwan Semiconductor Manufacturing Company Limited ↗ 0.36%, might expand their American footprint. That review yielded roughly $20 billion in new planned investment, Kung said, though he declined to name specific companies or projects.taipeitimes+1

AI and chip orders were "extremely lively," Kung told attendees, adding that the trend was driving interest among a broad range of Taiwanese firms. According to Radio Taiwan International, the new pledges bring total planned Taiwanese investment in the United States to approximately $55 billion. "Over just three months, in addition to the original $35 billion, they will add another $20 billion in investment," Kung said. "I believe this rolling review will continue as AI and semiconductors keep developing rapidly."straitstimes+1

CHIPS Act and TSMC's Expanding Footprint

The announcement builds on a wave of semiconductor investment drawn to the United States by the CHIPS and Science Act, which has directed $39 billion in subsidies toward onshore chip manufacturing. TSMC alone committed an additional $100 billion in July to its Arizona operations, raising its total U.S. investment plan to $265 billion across ten fabrication plants, two advanced packaging facilities, and a research center.enr+2

Bill Frauenhofer, executive director of semiconductor investment and innovation at the Commerce Department, spoke alongside Kung at the Taipei event. "It demonstrates our continued shared commitment to a secure, resilient and innovative semiconductor and electronics supply chain," Frauenhofer said. "These projects will strengthen critical technology capabilities in the U.S. and advance innovations that will shape our collective future for decades to come."kelo+1

Broader Trade Dynamics

The investment push comes as Taiwan navigates a complex trade relationship with Washington. Earlier this year, the two sides signed a trade agreement that lowered reciprocal tariffs to 15 percent in connection with Taiwanese investment commitments totaling $250 billion, according to the Seoul Economic Daily. President Donald Trump has at times accused Taiwan of "stealing" American semiconductor business, a characterization Taiwan's government has called unfair even as it encourages its companies to deepen their U.S. presence.sedaily+1