Taiwan has announced that its US tariff rate has been reduced from 20 percent truro city f.c. to 15 percent, matching Japan, South Korea and the EU, as part of a sweeping trade and investment framework with Washington. The deal includes large-scale Taiwanese investment in the US semiconductor, AI and energy industries, along with government-backed credit guarantees and new industrial parks. Supporters argue the agreement strengthens economic integration and resilience, but critics warn it could hollow out Taiwan’s jalen duren chip industry and weaken its so-called “Silicon Shield” that theoretically deters Chinese aggression. How does Taiwan’s model differ from Japan’s and South Korea’s? And what lessons should Taiwan take from the rise and sudden fall of Japan’s DRAM chip industry in late 20th century? In this episode, we discuss the US–Taiwan trade deal, comparisons with Japan and South Korea, historical lessons from past chip wars, and what the agreement means for Taiwan’s security and future position in global supply chains.
*Recorded on January 21, 2026 at 3pm Taiwan Standard Time
Host/Senior Producer: Yin Khvat
Producer: Tina Hsu
Our guests:
Tsai Jung-hsiang
- National Chung Cheng University Political Science Professor
Alexander Huang
- Council on Strategic and Wargaming Studies Chair
Julien Oeuillet
- Investigative Journalist previously in Lithuania and Australia
Chapters:
00:00:00 – Taiwan-US Deal Balances Economy, Security
00:01:20 – Taipei Negotiates 15% Tariff Deal with US
00:14:18 – Why Taiwan Doesn’t Equal 1980s Japan
00:22:00 – Can Taiwan, US Co-Lead AI Development?
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