Trade deal with US unlikely to weaken Taiwan’s ‘silicon shield’

Shipping containers are seen at the port in Keelung on January 16, 2026. The United States said on January 15 that it has signed a deal with Taiwan to reduce tariffs on goods from the democratic island, while increasing Taiwanese semiconductor and tech companies' investments in America. (Photo by I-Hwa Cheng / AFP)

Shipping containers are seen at the port in Keelung. The US said it would lower levies on Taiwanese goods to 15 per cent, from 20 per cent.

PHOTO: AFP

Yip Wai Yee

US and Taiwan agreed on a trade deal; levies on Taiwanese goods lowered to 15 per cent for US$250 billion investment from Taiwanese firms.
Taiwan defends the deal as "building" in the US, not "moving" from Taiwan, to support local supply chains. It is an extension of Taiwan's tech industry.
Experts believe Taiwan's "silicon shield" remains strong as long as advanced processes stay in Taiwan and overseas facilities use older tech.

AI generated

TAIPEI – A

landmark trade deal between Washington and Taipei

will not weaken Taiwan’s so-called “silicon shield” – the belief that the island’s dominance in advanced chipmaking helps deter a potential invasion by Beijing – analysts and officials say.

In an agreement announced late on Jan 15, Washington said it would lower levies on Taiwanese goods to 15 per cent, from 20 per cent, in exchange for an investment of US$250 billion (S$322 billion) from Taiwanese semiconductor firms in the US.

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