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US and Taiwan to discuss new chip law next month

The United States and Taiwan will discuss new US legislation next month to stimulate the semiconductor industry in the United States. In August, U.S. President Joe Biden signed the Chips and Science Act into law, which provides $52 billion in government subsidies for microchip manufacturing and semiconductor research and an estimated $24 billion investment tax credit for chip factories.

The United States actively encourages foreign technology companies that are ready to open production in the country.

The US-Taiwan Technology Investment Cooperation (TTIC) program has helped prioritize US-Taiwan economic relations, said Sandra Oudkirk, director of the American Institute in Taiwan.

Launched in 2020, TTIC is a platform that the US is using to address semiconductor issues, including the critical chip shortage that is impacting many industries.

The next meeting of representatives of Taiwan and the United States within the framework of TTIC will be held from October 12 to 14. At the event, the parties will discuss how the adopted law will be implemented in the United States, Oudkirk said.

In addition to Taiwan's investment in equipment and technology, the US is looking for continued support for the island nation's industry as the US seeks to pool Taiwan's talent and innovation system with the US and other partners, the director of the institute said.

Taiwan is trying to show its loyalty to the United States due to the impact of the global semiconductor shortage on the production of automobiles and household appliances.

Taiwan's TSMC, a major supplier to Apple, is already building a $12 billion plant in Arizona.

US and Taiwan to discuss new chip law next month