Taiwan President Pledges Closer U.S. Cooperation Amid Chip Industry Concerns

Taiwan President Lai Ching-te vowed on Friday to strengthen communication with the United States regarding concerns raised by former U.S. President Donald Trump over the chip industry. Lai also announced plans to boost investment in the U.S., hours after Trump called for reciprocal tariffs on trade partners.  

On Thursday, Trump accused Taiwan of dominating the U.S. chip market and expressed a desire to bring chip production back to the U.S. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, supplies leading companies like Apple, Intel and Nvidia.  

“The global semiconductor industry functions as an interconnected ecosystem with specialized roles,” Lai emphasized. He urged a measured response, highlighting the importance of collaboration between Taiwan and the U.S. to ensure mutual benefits.  

Speaking after a National Security Council meeting, Lai reaffirmed Taiwan’s commitment to maintaining dialogue with the U.S. He described Taiwan’s semiconductor sector as a key contributor to the global supply chain and positioned Taiwan as an "indispensable partner" in the U.S.'s efforts to rebuild its manufacturing base and retain high-tech leadership.  

Over the last two years, Taiwan has directed more than 40% of its overseas investments to the U.S., surpassing its investments in China, Lai noted.  

Additionally, Lai announced plans to propose a "special budget" to increase Taiwan’s defense spending to over 3% of its gross domestic product, underscoring the nation’s commitment to strengthening security alongside economic collaboration.