The White House releases the 2026 Presidential Economic Report, revealing how the BIG AND BEAUTIFUL Act deepens relations with Taiwan’s semiconductor industry

The White House releases the 2026 Presidential Economic Report, outlining the U.S. government’s strategy to drive economic growth and industrial restructuring through the “Build Back Better for All” Act. The released report places Taiwan in a position of importance, particularly emphasizing that the United States provides Taiwan with Full Expensing “full expensing” fiscal incentives for semiconductors and advanced technologies, lowering the capital cost for Taiwan and global cooperation partners to invest in building factories in the U.S. Through tax incentives and deregulation, the United States will work to strengthen GDP growth and deepen its semiconductor supply-chain relationship with Taiwan, with both sides committed to cooperating on the development of artificial intelligence.

How does the “Build Back Better for All” Act strengthen semiconductor supply-chain cooperation between the United States and Taiwan?

According to the 2026 Presidential Economic Report, the U.S. government strengthens cooperation with Taiwan in advanced semiconductor fields through a series of brand-new trade and investment agreements, along with the fiscal incentives provided by the “Build Back Better for All” Act.

Taiwanese companies commit to large-scale investment in the U.S.: Based on the investment agreement signed in January 2026, Taiwanese firms commit to investing at least $250 billion in U.S. semiconductor, energy, and artificial intelligence production.

Taiwan supports the establishment of a U.S. semiconductor supply chain: The Taiwan government additionally provides $250 billion in financing and credit support to build a complete semiconductor supply-chain ecosystem in the United States, expand U.S. domestic semiconductor manufacturing capacity, and ensure supply-chain security.

Taiwan and the U.S. announce mutual trade agreements: In February 2026, Taiwan and the U.S. jointly announced the “Agreement on Reciprocal Trade,” which further deepens cooperation on the basis of the prior investment agreements.

Eliminate trade barriers: Remove barriers to Taiwan’s industrial exports to the U.S., and establish clear trade terms to promote fair competition.

Deepen supply-chain resilience: By integrating trade and investment transactions, both Taiwan and the U.S. jointly reduce the vulnerability of key supply chains and support the creation of high-value job opportunities.

Fiscal incentives provided by the “Build Back Better for All” Act

The U.S. provides Full Expensing (Full Expensing) to Taiwanese companies. Under the “Build Back Better for All” Act, for the construction of new factories and research and development over a four-year period, spending is eligible for tax treatment that allows full immediate expensing, reducing the capital cost for Taiwanese semiconductor companies to build factories in the U.S. and develop advanced manufacturing processes.

Full expensing policy lowers the cost for Taiwanese semiconductor firms to build factories in the U.S.

To attract the return of high-tech industries, the “Build Back Better for All” Act specifically stipulates that new plant construction (over a four-year period) and research and development (R&D) expenditures can receive tax treatment that allows full immediate expensing. This policy is especially important for capital-intensive semiconductor industries, as it can significantly reduce the financial burden on Taiwanese semiconductor firms when building advanced process wafer fabs and R&D centers in the United States. The Council of Economic Advisers (CEA) estimates that these kinds of fiscal provisions will drive an increase in total real investment in the United States of 7% to 10%. Among them, chip manufacturing, data centers, and power infrastructure are listed as key beneficiaries, providing fiscal support for a real industrial-chain transformation between Taiwan and the U.S.

The U.S. provides technical guarantees for Taiwan’s semiconductor industry

Key materials assurance: The U.S. government supports key materials needed for semiconductor production by waiving environmental regulations, such as those related to chemical manufacturing.

Innovation assurance: By promoting private capital inflows into key industries such as semiconductors, it ensures that technology can shift quickly from the R&D stage to large-scale production.

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