The U.S. and Taiwan signed a trade agreement on Thursday to boost American semiconductor production in exchange for lower tariffs. Under the arrangement, Taiwan Semiconductor Manufacturing will build several new factories in Arizona as part of a USD 250 billion U.S. investment, according to the U.S. Department of Commerce. In return, the U.S. will cut tariffs on Taiwanese goods to 15% from 20% and exempt chipmakers like TSMC that expand operations in America. The treaty adds to recent agreements with the European Union and Japan.