News / Taiwan / cnyes
Minister Kung: Taiwan-US Investment Pacts Provide 2.5x Tax Exemptions Amid Trump Tariff Threats
Electronic Technology · Semiconductors · cnyes · 2026-09-10
2330
Economic Minister Kung Ming-hsin addressed concerns over potential US tariffs on chips, noting existing investment agreements protect Taiwanese firms with tax breaks.
What Happened
US-Taiwan Supply Chain Ties: Economic Minister Kung Ming-hsin addressed concerns regarding potential US tariffs on the chip industry by highlighting existing investment MOUs and tariff agreements. He confirmed that Taiwanese firms investing in the US are entitled to a 2.5x tax exemption quota, ensuring the stability of bilateral supply chain partnerships.
Economic Growth and Budgeting: Minister Kung emphasized that Taiwan's strong economic fundamentals, with projected growth exceeding 11% this year, provide sufficient tax revenue to support industrial initiatives. He dismissed concerns about budget crowding-out effects, noting that funding for small and medium-sized enterprises has been significantly increased.
Energy Infrastructure: Regarding the Taichung Power Plant, the Ministry of Economic Affairs plans to retain certain units as emergency backups to ensure grid stability. This strategy is critical to meeting the rising electricity demand from major projects, including TSMC's expansion in Central Taiwan.
Regulatory Oversight: The government remains committed to strict investment reviews for foreign entities, including potential market entries by Chinese brands. The Ministry will scrutinize agency models to prevent the circumvention of investment regulations, ensuring that all market activities align with national security and industrial policies.