Taiwan Denies It Will Swap 'Worker Training' For Lower US Tariffs

Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) sits at the center of Taiwan's push to secure lower U.S. tariffs, as the island works to reduce duties on its exports from 20% to 15% while advancing semiconductor cooperation with Washington.

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Taiwan officials told lawmakers Monday that tariff reduction remains the primary objective in ongoing trade negotiations with the U.S.

They told Reuters that workforce training for U.S. chip manufacturing is not a condition in Taiwan's talking points.

Also Read: Taiwan Semiconductor Names CEO Of North America Unit For USA Expansion

Taiwan's top trade negotiator, Jenni Yang, told Reuters the government is focused on a tariff cut target of 15% and is pushing to finalize an agreement before year-end.

She reiterated that Taiwan is promoting its "Taiwan model," encouraging the U.S. to adopt science-park-driven tech clusters that replicate the island's semiconductor success.

According to Reuters, Taiwan's semiconductor exports are currently exempt from the existing 20% U.S. tariff rate.

Trump previously declared that semiconductor imports would eventually face tariffs approaching 100%, unless companies manufacture within the U.S. or commit to doing so, a category that includes Taiwan Semiconductor.

Bolstering USA Chip Workforce

Prior reports indicated President Donald Trump's administration is exploring a deal involving fresh Taiwanese investment and training for U.S. workers in advanced manufacturing fields.

The U.S. is pressing Taiwan to boost investment in American chip manufacturing and train U.S. workers as part of a new trade deal, while Taiwan is pushing for relief from the 20% tariff currently applied to its exports.

Both sides are actively negotiating terms that would link semiconductor cooperation with reduced trade barriers.

Meanwhile, Taiwan Semiconductor — the world's leading contract chipmaker — continues its massive expansion in the U.S., investing $165 billion to build fabs in Arizona.

Economy Minister Kung Ming-hsin said the government could consider support for Taiwan Semiconductor worker training if needed, but made clear that such assistance is not a bargaining item in trade talks.

Taiwan Semiconductors Recent Capital Spend

The $1.5 trillion contract chipmaker boosted its third-quarter dividend by 20% after posting record profit and securing major investments in future capacity.

Taiwan Semiconductor raised its cash payout to 6 New Taiwan dollars (about $0.19) per share after reporting July-September net income of NT$452.3 billion ($14.56 billion), driven by continued demand from customers like Nvidia Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL).

The chipmaker also approved a nearly $15 billion capital plan to expand advanced and specialty technology fabs and fund R&D.

Despite strong earnings, free cash flow fell to NT$139.4 billion due to lower operating cash generation. Still, the company's shares are up 48% this year, supported by its key role in global AI and smartphone supply chains.

TSM Price Action: Taiwan Semiconductor shares were down 1.55% at $287.00 during premarket trading on Friday, according to Benzinga Pro data.

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