Taiwan said Friday it would aim to retain its key role as a producer of superconductor chips driving the emerging AI industry following the announcement of a trade deal with the United States, which wants more chips made on its territory. The deal, opposed by Beijing, will reduce tariffs on Taiwanese goods and boost investment in the US.

The U.S. and Taiwan have reached a trade agreement to build chips and chip factories on American soil, the Department of Commerce announced on Thursday.

Commerce Secretary Howard Lutnick said the deal would help boost semiconductor production in the US.