Taipei: Taiwan and the United States have reached an agreement for Taiwanese semiconductor and technology companies to invest at least US$250 billion in the U.S., as part of trade talks that concluded Thursday, according to government officials on Friday. The agreement, outlined in a memorandum of understanding (MOU) signed in the U.S., also includes a reduction of tariffs on Taiwan-made goods from 20 percent to 15 percent and provides US$250 billion in credit guarantees for Taiwanese companies investing in the U.S. According to Focus Taiwan, Vice Premier Cheng Li-chiun announced at a U.S. press conference that although the MOU on investment commitments has been signed, a more formal trade pact is expected in the coming weeks. This agreement will address the tentative deal on tariff reduction and ensure semiconductors and related products receive the most favorable treatment under Section 232 of the U.S. Trade Expansion Act. However, final tariff rates and quotas are yet to be determined. The agreement, onc e formalized, would be the first of its kind with the U.S., significantly reducing uncertainties for domestic high-tech companies, Cheng stated. A fact sheet from the U.S. Commerce Department indicates that Taiwanese firms building new U.S. semiconductor capacity can import up to 2.5 times that capacity duty-free during construction, with preferential rates above the quota. After project completion, firms may continue to import up to 1.5 times their U.S. production capacity duty-free. Cheng noted that the MOU does not specify a timeline for fulfilling the US$250 billion investment pledge, leaving it up to the companies. It remains unclear if this commitment includes the US$165 billion already pledged by Taiwan Semiconductor Manufacturing Co. (TSMC) for U.S. investments. There are concerns about potential impacts on Taiwan's domestic industry and its "silicon shield" against Chinese threats. Cheng did not address whether the agreement would reduce U.S. dependence on Taiwan but dismissed fears that increased investment would harm the domestic semiconductor industry. She emphasized that Taiwan's goal is to support the global expansion of its high-tech industries, not relocate them. U.S. Commerce Secretary Howard Lutnick mentioned an aim for 40 percent of Taiwan's supply chain to be in the U.S., but Economic Affairs Minister Kung Ming-hsin countered that this would not be achieved even under the new agreement. He projected that by 2036, about 80 percent of advanced 5-nanometer chips or more will still be produced in Taiwan.