The US should deepen its cooperation with Taiwan on semiconductor development to counter China’s accelerating growth in the industry, the Research Institute for Democracy, Society and Emerging Technology (DSET) said in a statement on Monday in response to US President Donald Trump’s tariffs policies, including levies on semiconductors.
“Without concrete measures to address the growing challenge from China, the global industrial sector will become increasingly dependent on Chinese suppliers, which could present tremendous risks to the international democratic alliance,” DSET chief executive officer Jeremy Chang (張智程) warned.
Chang and DSET non-resident fellow Ho Ming-yen (何明彥) said that Taiwan, the US and other democratic nations fundamentally rely on stable, diversified, market-driven supply chains. China’s continued expansion in the semiconductor sector, if left unchecked, would seriously jeopardize those principles and could disrupt critical links, including those supporting the defense industry.
To counter this threat, Ho urged democracies to forge stronger partnerships in the sector by enabling free trade across the semiconductor supply chain and coordinating on production capacity as well as specialized process development. Such efforts would ensure that innovation remains in the hands of democratic nations, while building resilience against economic coercion.
President William Lai (賴清德) has also expressed Taiwan’s commitment to deepening collaboration with the US in strategic technologies. In a February meeting with then-US deputy national security adviser Matt Pottinger and retired US rear admiral Mark Montgomery, Lai reaffirmed his administration’s goal of jointly constructing a secure and robust “non-red” supply chain with Washington.
“This will ensure that Taiwan, the US and democratic partners around the world maintain a technological edge,” Lai said at the time.
The remarks reflect a broader policy direction from Taiwan’s leadership that aligns with the DSET’s recommendations: building an integrated, secure and democratic tech ecosystem in partnership with the US. Yet this vision is being threatened by the tariffs that Trump’s administration is imposing.
Business Insider on April 9 reported that Trump had threatened Taiwan Semiconductor Manufacturing Co (TSMC) with a “big tax” of up to 100 percent if it did not build plants in the US. His remarks suggest that he understands just how essential TSMC’s chips are to the US economy. Given the strategic importance of ensuring that TSMC does not fall under China’s influence, the US should be involved in initiatives to enhance the semiconductor industry’s global resilience — especially among its democratic allies.
TSMC is a key member of the Semiconductor Industry Association. Although the association ostensibly represents US and non-US chipmakers, it is based in Washington and advocates US interests. Still, it would be shortsighted for it not to recognize that the future of the US semiconductor industry is inextricably linked with the well-being of its democratic partners in East Asia, particularly Taiwan.
A more tightly knit, cooperative network of “non-red” chipmakers would be far more capable of withstanding Chinese competition and coercion. Such a network is especially urgent, as Chinese tech firms are required to share innovations with the Chinese military, posing a serious security threat.
Taiwan should seek to engage constructively with the Trump camp and future US administrations to stress the importance of avoiding harmful tariffs and restrictions on “non-red” supply chain producers. Preserving open trade among trusted democratic partners is not merely an economic concern — it is a strategic imperative.
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