Taiwan vowed to remain the world’s “most important” maker of chips for artificial intelligence after reaching a trade deal with the US that will reduce tariffs on the island’s shipments and increase Taiwanese investment on US soil.

It comes one day after Taiwanese chipmaking titan TSMC posted a jump in profits, bolstering confidence that massive AI investments will pay off.

“The surge in demand for AI products manufactured by TSMC has pricked up the ears of the US administration,” said Susannah Streeter, chief investment strategist at Wealth Club.

“The AI juggernaut clearly has further to run, with demand for AI chips seemingly insatiable for now,” she added.

Taipei’s stock market closed up 2% Friday, while shares in TSMC advanced 3%.

On Thursday, Wall Street’s tech-rich Nasdaq index had piled on more than 1% early in the session thanks to gains among leading chip companies.

But later in the day there was “kind of a roll-back in the megacap stock and semiconductors,” said Briefing.com analyst Patrick O’Hare.

That followed remarks from US commerce secretary Howard Lutnick indicating that semiconductor companies that do not build plants in the US could face 100% tariffs, though the three main Wall Street indices finished moderately higher.

Elsewhere on the international trade front, Canada’s Prime Minister Mark Carney and Chinese President Xi Jinping agreed Friday on a raft of measures at the first meeting between the countries’ leaders in Beijing in eight years.

Carney hailed a “landmark deal” under a “new strategic partnership”, turning the page on years of diplomatic spats, retaliatory arrests of each country’s citizens and tariff disputes.

In commodities trading, oil prices rebounded after shedding 5% Thursday as US President Donald Trump stepped back from military action in crude producer Iran.