Commerce Secretary Howard Lutnick says the United States is preparing to pull the full semiconductor supply chain back onto American soil through a sweeping $500 billion investment framework involving Taiwan.
In a new CNBC interview, Lutnick says the multi-billion-dollar deal is a decisive move to secure U.S. self-sufficiency in chip manufacturing and related technologies.
He says the arrangement is built around two parallel commitments from Taiwan, combining private capital with government-backed support to relocate production capacity to the United States.
“So basically, there are two commitments from Taiwan. There’s $250 billion that comes directly from companies. And then there’s $250 billion supplied by the government to help their smaller and medium-sized companies all and bring that whole supply chain to America. So we’re going to bring it all over so we become self-sufficient in the capacity of building semiconductors.”
Lutnick says the effort builds on earlier moves tied to Taiwan Semiconductor Manufacturing Company’s (TSMC) US expansion, including financial support extended during the previous administration.
“So what we did is we gave Taiwan $100 billion in credit because TSMC came in with that $100 billion in 2025 with the Trump administration. So that’s $100 billion towards the $250 billion. Now I expect TSMC to come in huge, bigger.”
He says the initiative goes far beyond a single manufacturer and is designed to relocate every layer of the semiconductor ecosystem, including critical components that rarely receive public attention.
“But then we have the rest of the supply chain of semiconductors, everything. You have to remember, like, each chip has a translator in it. What connects the power to the chip? What connects the chip to what you see on your screen, right? All those bits and parts, they all need to come here. And so we’re going to have hundreds of companies coming here. We’re going to build giant semiconductor industrial parks in America. And we are going to bring semiconductors home to America.”
He described the $500 billion commitment as an opening move rather than a final tally.
“That’s what this is. This is a $500 billion down payment on let’s bring those semiconductors home.”
Last week, the US signed a “historic” deal with Taiwan that’s designed to drive a massive reshoring of America’s semiconductor sector. Under the deal, the US reciprocal tariff rate applied to Taiwanese goods will be no more than 15%, along with a 0% reciprocal tariff for generic pharmaceuticals, their generic ingredients, aircraft components and unavailable natural resources.
The plan represents one of the largest coordinated industrial reshoring efforts in modern US history, with semiconductors now treated as a core national and economic security priority.
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