Taiwan President Lai Ching-te pledged on Friday to talk with the United States about President Donald Trump’s concerns over the chip industry and to invest more in and buy more from the country, while ramping up defence spending.
Trump spoke critically about Taiwan on Thursday, saying he aimed to restore US manufacturing of semiconductor chips and repeating claims about Taiwan having taken away the industry he wanted back in the United States.
Speaking to reporters after holding a meeting of the National Security Council at the presidential office, Lai said that the global semiconductor supply chain is an “ecosystem” in which the division of work among various countries is important.
“We of course are aware of President Trump’s concerns,” Lai said.
“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,” he added.
Taiwan is home to the world’s largest contract chipmaker, TSMC, a major supplier to companies including Apple and Nvidia, and a crucial part of the developing AI industry.
Taiwan also runs a large trade surplus with the United States, which surged 83 per cent last year, with the island’s exports to the US hitting a record $111.4 billion, driven by demand for high-tech products such as semiconductors.
Lai said that the United States is Taiwan’s largest foreign investment destination and that Taiwan is the United States’ most reliable trade partner.
Trump has also previously criticised Taiwan, which faces a growing military threat from China whose government claims the island as its own territory, for not spending enough on defence, a criticism he has made of many US allies.
“Taiwan must demonstrate our determination to defend ourselves,” Lai said, adding his government is working to propose a special budget this year to boost defence spending from 2.5 per cent of its GDP to 3 per cent.
(Reporting by Yimou Lee; Additional reporting by Andrea Shalal in Washington; Writing by Ben Blanchard; Editing by Shri Navaratnam and Gerry Doyle)
The article originally appeared on Business Standard.
