WASHINGTON, Jan 15 (Reuters): The U.S. and Taiwan clinched a trade deal on Thursday that cuts tariffs on many of the semiconductor powerhouse's exports, directs new investments in the U.S. technology industry and risks infuriating China.

The deal deepens the Trump administration's ties with Taipei at a critical time as China ratchets up pressure on the island, which it views as its own, and Washington has worked to avoid an all-out trade war with Beijing.

Under the long-negotiated deal, Taiwanese chipmakers like TSMC that expand U.S. production will be charged a lower tariff on semiconductors or related manufacturing equipment and products they import into the U.S. and can import some duty-free. Broad tariffs that apply to most other Taiwanese exports to the U.S. will fall from 20% to 15%.

Generic pharmaceuticals, aircraft components and "unavailable natural resources" will face a 0% tariff, the Commerce Department said. The U.S. also committed that Taiwan will be treated no worse than anyone else should chips tariffs be increased later, according to Taiwan.

In exchange, Taiwanese companies will invest $250 billion to increase production of semiconductors, energy and artificial intelligence in the U.S. That includes $100 billion already committed by TSMC in 2025, with more to come, according to U.S. Commerce Secretary Howard Lutnick.

Taiwan will also guarantee an additional $250 billion in credit to facilitate further investment, the Trump administration said.

Lutnick said in an interview on CNBC on Thursday that the objective was to bring 40% of Taiwan's entire chip supply chain and production to the U.S. He said that if they did not build in the U.S., the tariff was likely to be 100%.

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