Taipei, Feb. 15 (CNA) - Taiwan is stepping up its diplomatic efforts to secure its place at the forefront of the global semiconductor industry amid rising concerns from the U.S. over trade practices. The Taiwanese government is positioning itself as both a cooperative ally and as a key player by facilitating investments with U.S. tech firms, particularly within the semiconductor sector.
During a recent briefing, Taiwanese national security officials confirmed the government's commitment to supporting local companies eager to expand their operations overseas. An anonymous official stated, "The government will not force Taiwanese companies to invest... but is merely planning to engage with those looking to expand overseas to understand their needs..." This strategic approach is expected to ease U.S. concerns following President Donald Trump’s announcement to push for reshoring the semiconductor manufacturing sector.
Trump's administration has expressed frustration over Taiwan's semiconductor exports, claiming they have taken chip business away from the U.S. The President stated, "Taiwan had taken semiconductor chip business away from the United States and he wanted it back." This raises important questions about Taiwan’s semiconductor dominance and the future of U.S.-Taiwan economic relations.
At the heart of the current dialogue is the Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chip manufacturer which is investing around $65 billion to establish three semiconductor fabrication plants (fabs) in Arizona. This investment is not just about the economics but also about demonstrating Taiwan's commitment to the U.S. market. "Taiwan has always been one of the U.S.’s most reliable trade partners," Lai Ching-te stated during the National Security Council meeting, emphasizing the importance of mutual trade and collaboration. "By 2024, investment surpassed $100 billion, creating nearly 400,000 job opportunities."
Lai urged Taiwanese businesses to communicate with Washington as part of efforts to address concerns sparked by Trump. Without doubt, Taiwan's semiconductor companies wish to present themselves as partners rather than competitors. According to Lai, "close bilateral cooperation will allow us to expand U.S. investment and procurement, facilitating balanced trade."
Taiwan's technological strengths have positioned it uniquely within the semiconductor industry. Wu Cheng-wen, head of Taiwan's National Science and Technology Council, highlighted the island's commitment to collaboration. He remarked, "Each country has its own specialty for chips... Given the complexity of the semiconductor industry, there is no need for one country to control everything," referring to the misconception perpetuated by Trump’s claims.
Wu also credited Taiwan’s success to decades of hard work, stating, "This shows Taiwan has invested half a century of hard work to achieve today’s success..." It signifies Taiwan’s dedication and resilience within the industry. Wu noted the importance of collective effort among democracies to establish resilient and diversified supply chains.
The U.S.-Taiwan relationship, according to Taiwanese officials, is far from competitive; they see it as complementary. They are eager to bring together allies such as Japan as part of efforts to strengthen semiconductor supply chain partnerships, driven by the global shortages the industry has been facing.
With tensions between Taiwan and China always simmering, and China’s view of Taiwan as its breakaway province, Taiwanese officials are also working to reinforce their defense capabilities. Lai announced plans for allocation exceeding 3% of Taiwan's GDP on the defense budget to bolster its military presence.
The core of Taiwan's strategy is not merely about economic gains but about reassurance to both the United States and its democratic allies. By emphasizing cooperation and the significance of their role within the semiconductor supply chain, Taiwan aims to develop its image as not just a chip producer but as a strategic partner.
Yet it remains to be seen how effective these diplomatic efforts will be, particularly considering the volatility of international trade and the global semiconductor marketplace. The forthcoming months will be pivotal for Taiwan as it implements its plans and navigates the complex dynamics of U.S. relations and global competition.
With heightened focus on national security, economics, and cooperation, the future of Taiwan's semiconductor industry intertwines closely with its diplomatic relations with the U.S., forming the backbone of trade strategies and technological developments.