Taiwan’s President Lai Ching-te announced on Friday his intention to enhance communication with the United States regarding President Donald Trump’s concerns about the semiconductor industry, as well as to increase investments in the U.S. This statement came shortly after Trump implemented reciprocal tariffs on trade partners.
On Thursday, Trump expressed that Taiwan had effectively taken over the U.S. chip business and indicated his desire to see it return to American soil. Taiwan’s TSMC stands as the largest chip manufacturer globally, supplying chips to major companies such as Apple, Intel, and Nvidia.
During a news briefing following a National Security Council meeting at the presidential office, Lai acknowledged Trump’s concerns. He characterized Taiwan’s semiconductor sector, along with the global semiconductor landscape, as an “ecosystem” where nations focus on specific specializations.
“The global semiconductor industry operates as an ecosystem with a division of labor,” Lai stated.
“In light of President Trump’s recent actions, Taiwan must respond with composure and maintain effective communication with the relevant industries,” he added.
“We aim to foster a win-win situation that not only benefits the U.S. but also provides opportunities for growth within Taiwan’s industries.”
His remarks followed shortly after Trump announced reciprocal tariffs on trade partners that impose taxes on U.S. imports, a decision that could potentially ignite a global trade conflict.
While the U.S. does not officially recognize Taiwan as a sovereign nation, it remains its most significant supporter and primary supplier of military equipment. However, the dynamics of their bilateral relations appear more uncertain due to Trump’s seemingly transactional stance on geopolitical matters.
Lai expressed that his administration would introduce a “global semiconductor democratic supply chain partnership initiative” and indicated a willingness to collaborate with allies like the U.S. to establish a more robust and diversified semiconductor supply chain.
Read more: Trump says, Reciprocal Tariffs will be Implemented Today
Lai emphasized that Taiwan will continue to engage with the U.S. to ensure that the new administration comprehends Taiwan’s role as an “essential partner in the United States’ efforts to revitalize its manufacturing sector and strengthen its high-tech dominance.”
In the last two years, Lai noted that over 40% of Taiwan’s foreign investments have been directed towards the United States, surpassing those allocated to China. Additionally, on Friday, Lai announced his intention to introduce a “special budget” aimed at raising defense expenditures to more than 3% of Taiwan’s gross domestic product.
