Taiwan's government says it has already locked in preferential terms for its chipmakers, softening the blow of a coming US tariff on semiconductors — reassuring for TSMC and the rest of Taiwan's chip industry, but a warning sign for anyone who does not build in America.

• US Commerce Secretary Howard Lutnick said the Trump administration is drawing up new tariffs on chips, with an exemption for companies that make them inside the US.
• Taipei points to a deal signed with Washington this year that gives Taiwanese firms investing in the US a duty-free quota, plus the lowest available tariff rate on anything above it.
• Taiwan's cabinet says it will use government-to-government talks to help individual companies nail down their tax-free quotas and exemption lists once the tariffs land.
• The message is clear: chip production is being pulled toward American soil, and access to the US market now depends on investing there.
• Taiwan is also tightening rules after a big circuit-board maker was raided for allegedly relabeling China-made products as Taiwanese to dodge trade barriers.

Outlook: The tariffs are expected to be announced soon, and Taiwan will push to confirm its promised discounts before they take effect.