On Jan. 15, 2026, the U.S. and Taiwan finalized a historic trade agreement to jointly build chips and chip factories on American soil. Taiwanese semiconductor companies will invest $250 billion in U.S. chip production capacity, with the U.S. providing tariff relief to Taiwan and committing zero tariffs on certain goods.

This strategic move aims to bolster U.S. supply chain security and counter Chinese technological advancement. Investors can capitalize on the surge in domestic chip manufacturing by considering diversified semiconductor ETFs. This deal is expected to benefit companies like Taiwan Semiconductor Manufacturing Company (TSM) and the entire ecosystem supporting chip fabrication.

The agreement allows companies building U.S. factories to import equipment and materials tariff-free. TSM, a major beneficiary, is set to potentially double its presence in Arizona with the support of the CHIPS Act. Other beneficiaries include semiconductor equipment giants, American chip design leaders, and memory manufacturers like Micron Technology.

Investors looking to benefit from the chip industry boom resulting from the U.S.-Taiwan deal may consider semiconductor ETFs. ETFs like VanEck Semiconductor ETF (SMH), iShares Semiconductor ETF (SOXX), and Invesco PHLX Semiconductor ETF (SOXQ) offer diversified exposure to the semiconductor industry growth. These ETFs have shown strong performance and offer a way to mitigate company-specific risks while focusing on industry trends.

Read more at Nasdaq: Top-Ranked Semiconductor ETFs to Buy as Taiwan-US Agree on $500B Chip Deal