- Taiwan urges an economic partnership with the EU to boost semiconductor and AI cooperation.
- TSMC’s new German chip plant exemplifies Taiwan’s commitment to Europe.
- EU-Taiwan collaboration supports resilient supply chains for democracies.
Taiwan President Lai Ching-te has called for a formal economic partnership agreement with the European Union, emphasizing the shared democratic values and the critical role of secure supply chains.
Speaking at a Taiwan-EU investment forum in Taipei, Lai highlighted how such an agreement would strengthen cooperation in semiconductors and AI, ensuring economic resilience and stability in global supply chains.
EU and Taiwan: A Semiconductor Alliance in the Making
The EU, under the European Chips Act, seeks to reduce reliance on Asian chip production by collaborating with “like-minded” partners like Taiwan. While the EU values Taiwan’s role as a trusted trade ally, formal agreements face diplomatic hurdles due to Taiwan’s complex geopolitical position.
Taiwan Semiconductor Manufacturing Co. (TSMC) has already cemented its European footprint with its advanced chip plant in Dresden, Germany. This facility will play a critical role in supporting Europe’s technology and automotive sectors, highlighting Taiwan’s strategic importance to EU industries.
The EU has reciprocated Taiwan’s outreach with initiatives like the European Chips Act, aimed at bolstering semiconductor production within Europe. Despite praising Taiwan as a “trusted partner,” the EU has yet to indicate plans for a formal agreement, citing geopolitical sensitivities.
While Taiwan remains excluded from many global trade agreements, its proactive approach has garnered bilateral successes, including trade partnerships with Britain and its CPTPP application. These moves reflect Taiwan’s resilience in navigating international trade isolation.
The partnership between Taiwan and the EU could reshape global supply chains and strengthen democratic alliances, but diplomatic challenges must be carefully navigated to achieve these goals.
“Taiwan, a vibrant democracy with an open economy, is a trusted partner for us to promote our economic security.” — Maria Martin-Prat, European Commission
