South Korean industry and government officials are monitoring a new trade agreement between the US and Taiwan that links semiconductor investment to import duty exemptions, with officials in Seoul saying that any future US-South Korea talks should not leave Korea worse off than Taiwan. Officials view the terms as a potential benchmark for future US-South Korea trade negotiations.
The United States and Taiwan formalized a significant trade and investment agreement on January 15, 2026, establishing a new framework for bilateral economic relations.
TSMC used its earnings call for the fourth quarter of 2025 to deliver one of its most bullish outlooks in years, arguing that artificial intelligence (AI) is reshaping the semiconductor industry's growth trajectory rather than inflating a short-lived bubble.
Taiwan's government is stepping up cross-ministerial support to build a domestic silicon photonics ecosystem, with a focus on strengthening local capabilities in co-packaged optics materials and supporting industrial deployment under its long-term chip innovation strategy.
