U.S. and Taiwan Strengthen AI, Semiconductor, and Drone Cooperation at High-Level Economic Talks

Senior officials from Taiwan and the United States have reinforced bilateral cooperation in artificial intelligence, advanced technology, and drone development during the sixth round of the U.S.-Taiwan Economic Prosperity Partnership Dialogue. The high-level forum, which began during the first Trump administration in November 2020, highlights the growing strategic and economic ties between Washington and Taipei, particularly in critical technology sectors.

According to the U.S. State Department, the latest round of talks was led by U.S. Under Secretary for Economic Affairs Jacob Helberg and Taiwan’s Minister of Economic Affairs Kung Ming-hsin, who is currently visiting the United States. The discussions underscored Taiwan’s role as a “vital partner” in advancing secure and resilient global supply chains, especially as demand for artificial intelligence and semiconductor technologies accelerates worldwide.

A key outcome of the meeting was the signing of statements on the Pax Silica Declaration, a U.S.-led initiative aimed at safeguarding AI and semiconductor supply chains, as well as a separate statement on U.S.-Taiwan cooperation in economic security. The State Department emphasized that Taiwan’s advanced manufacturing sector plays a crucial role in fueling the global AI revolution, given the island’s dominance in producing cutting-edge semiconductors.

The dialogue also covered a wide range of topics related to supply chain security, including AI-related risks, certification standards for drone components, and cooperation on critical minerals. Officials exchanged views on countering economic coercion, expanding cooperation in third countries, and addressing tax-related barriers that hinder cross-border investment. Taiwan has long advocated for a double taxation avoidance agreement with the U.S., arguing it would significantly boost bilateral trade and investment.

Earlier this month, Taiwan and the United States reached an agreement to reduce tariffs on Taiwanese exports and encourage greater Taiwanese investment in U.S. semiconductor manufacturing and other strategic industries. Despite the absence of formal diplomatic ties, the U.S. remains Taiwan’s most important international supporter and primary arms supplier.

China continues to oppose official interactions between the U.S. and Taiwan, asserting that Taiwan is an internal matter. However, Taiwan’s government firmly rejects Beijing’s sovereignty claims, maintaining that the island’s future can only be decided by its people.