Taiwan Pledges $20bn More in US Chip Investment While Courting the EU, Reuters Reports
Taiwan has announced a further $20bn of planned investment in the United States, Reuters reports, building on a prior $250bn commitment agreed upon with Washington. This news emerged during SEMICON Taiwan, where the island nation promoted its semiconductor dominance as a democratic alternative to US-imposed tariffs.
Navigating Political and Economic Dynamics
During the event, Taiwan’s economy minister, Kung Ming-hsin, highlighted the new investment figure. This comes as US Commerce Secretary Howard Lutnick warns that semiconductor tariffs will impact companies not building in the US.
Taiwan’s commitment includes substantial purchases of American goods: $44.4bn in liquefied natural gas and crude oil, $15.2bn in aircraft and engines, and $25.2bn in power-generation equipment, emphasizing the industry’s high energy consumption.
Political and Commercial Arguments
President Lai Ching-te emphasized the political aspects, arguing that international expansion by Taiwanese firms fosters resilience and shared prosperity, linked to democratic governance and the rule of law.
Foxconn chairman Young Liu and ASE’s Tien Wu echoed this, stating that companies must now "make with Taiwan, not in Taiwan."
A Shifting Landscape
Taiwan’s chip production has historically been concentrated on its shores, prompting references to a "silicon shield". However, with expanding global demands and political pressures, the focus is shifting.
In Europe, Taiwan’s deputy foreign minister Francois Wu emphasized shared democratic values and a rules-based international order, positioning Taiwan as a technology partner rather than a competitor.
While Taiwan cannot offer chip production capacity to Europe on the same scale as the US or China, it can provide access to its advanced manufacturing capabilities, particularly in Lithuania.
Ultimately, Taiwan’s diplomacy during SEMICON Taiwan aimed to secure political backing for its chip production hub, despite the geographical constraints.