Taiwan to Collaborate with Semiconductor Industry on US Policies

President Lai Ching-te of Taiwan promised to increase defense spending, increase investment in and purchases from the nation, and discuss President Donald Trump's worries about the semiconductor sector with the United States.

"Taiwan's government will communicate and discuss with the semiconductor industry and come up with good strategies. Then we will come up with good proposals and engage in further discussions with the United States," Lai said.

Trump made disparaging remarks about Taiwan on Thursday, stating that he intended to bring back American semiconductor chip manufacturing and restating his accusations that Taiwan had stolen the industry he wanted back in the US.

The largest contract chipmaker in the world, TSMC, is based in Taiwan. It is a vital component of the emerging AI sector and a significant supplier to firms like Apple and Nvidia. With exports to the US reaching a record US$111.4 billion last year, driven by demand for high-tech goods like semiconductors, Taiwan also maintains a significant trade surplus with the US, which increased by 83%.

According to Lai, Taiwan is the most dependable trading partner of the United States and the US is Taiwan's top destination for foreign investment.

Trump has previously criticized numerous US allies for not investing enough on defense, including Taiwan, which is facing an increasing military threat from China, whose government claims the island as its own territory.