Taiwan Expresses Readiness to Negotiate with the U.S. on Semiconductor Industry

The Taiwanese government announced its readiness to negotiate with the U.S. government regarding Donald Trump's concerns about the semiconductor industry, defense spending, and increasing investment in the United States. The President of Taiwan stated on Friday, "As a first step, we are increasing Taiwan's defense spending to demonstrate our ability to defend ourselves against threats, and in this regard, we are formulating a special budget to raise defense spending from 2.5% of GDP to 3%." Lai Ching-te also emphasized Taiwan's readiness to cooperate with the U.S. in the semiconductor industry, stating that "democratic countries can create a joint supply chain for artificial intelligence chips." He noted that the U.S. is Taiwan's largest foreign investment destination and asserted, "Taipei is Washington's most reliable business partner." Donald Trump accused Taiwan on Thursday of monopolizing the semiconductor industry and expressed his desire to bring chip production back to the U.S. TSMC, the world's largest chip manufacturer and a key supplier for companies like Apple and Nvidia, plays a crucial role in this industry. The company has invested $65 billion in new factories in Arizona since Trump's first term. A senior Taiwanese official stated that if TSMC decides to increase investment in the U.S., the Taiwanese government will support it. Trump has also criticized Taiwan for insufficient defense spending. The U.S. Department of Commerce has banned "American investment" for semiconductor production in China, increased pressure to prevent the sale of Dutch "chip-making machines" to China, and intends to control China's chip industry with comprehensive export regulations.