Taiwan Pledges Stronger U.S. Ties Amid Trump’s Chip Industry Concerns

Taiwanese President Lai Ching-te vowed to address former U.S. President Donald Trump’s concerns over the semiconductor industry, emphasizing collaboration with the U.S. to strengthen supply chains and boost investment. Trump recently criticized Taiwan for dominating semiconductor manufacturing, expressing his intent to bring production back to the U.S.

Lai highlighted Taiwan’s key role in the global semiconductor ecosystem, stating that Taiwan will strategize with industry leaders and propose solutions to the U.S. He also advocated for a global alliance on AI chips to create a “democratic supply chain.”

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, plays a crucial role in the AI industry, supplying giants like Apple and Nvidia. TSMC is already investing $65 billion in U.S. factories, a project initiated under Trump’s first administration. Taiwan officials noted they would support further U.S. investment if TSMC finds it feasible.

Despite strong U.S.-Taiwan economic ties, Taiwan’s trade surplus with the U.S. surged 83% last year, reaching $111.4 billion, driven by high-tech exports. Lai reaffirmed Taiwan’s commitment as a reliable trade partner and leading foreign investor in the U.S.

On defense, Trump previously criticized Taiwan for insufficient military spending amid rising tensions with China. Lai announced plans to increase Taiwan’s defense budget from 2.5% to 3% of GDP, reassuring allies of Taiwan’s commitment to self-defense. However, Taiwan’s parliament remains divided over budget cuts, including military spending.

While the U.S. remains Taiwan’s strongest international ally and arms supplier, Lai underscored Taiwan’s need to demonstrate its defense readiness amid growing concerns from global partners.