Taiwanese companies other than TSMC, the world's largest contract chipmaker, plan to invest an additional $20 billion in the United States as demand for semiconductors from Silicon Valley technology giants keeps rising.
Taiwan Economy Minister Kuo Jyh-huei made the remarks at the opening of the U.S. pavilion at the Semicon Taiwan 2026 chip exhibition in Taipei on the 2nd, Reuters reported. The ministry identified the U.S. investment plans of Taiwanese firms outside TSMC while attending SelectUSA 2026, the largest U.S. investment promotion event, held in Maryland in May, Kuo said. The tally of those additional investment plans came to $20 billion, he said.
Kuo cited brisk demand as the reason for the expanded spending, saying orders related to artificial intelligence and semiconductors are very strong. He did not name the individual companies. Pressure from the administration of U.S. President Donald Trump to invest domestically is also seen as a factor, along with Taiwan's special relationship with Washington on weapons supplies in the event of a conflict. The United States has recently pressed Taiwanese technology firms to increase investment in the country as part of efforts to expand domestic chip production.
U.S. officials welcomed the plans. Bill Frauenhofer, executive director of the Commerce Department's office overseeing semiconductor innovation and investment, who attended the same event, said the plans demonstrate both sides' commitment to a secure, resilient and innovative supply chain for semiconductors and related products, and that they would drive decades of innovation.
In January, the United States and Taiwan signed a trade agreement lowering reciprocal tariffs to 15% in connection with Taiwanese investment in the United States. The deal includes $250 billion in direct investment by Taiwanese companies. In July, the U.S. Commerce Department announced that TSMC would add $100 billion to its previous commitment of about $65 billion for advanced chip manufacturing and packaging facilities in Arizona. That brings TSMC's total U.S. investment to a record $265 billion. Taiwanese chip companies are now seen joining that trend.
