Taiwan’s Lai says chip dominance rests on democracy

Taiwan President Lai Ching-te on Tuesday declared that the island's semiconductor dominance is rooted in its democratic institutions and rule of law, framing Taiwan as a dependable global partner amid rising geopolitical tensions over chip supply chains.

Speaking at the SEMICON trade show in Taipei, Lai said decades of investment and international collaboration have given Taiwan "fast, flexible, and highly efficient manufacturing capabilities" that reliably serve the global market. "On the foundation of democracy and the rule of law, [Taiwan] has stably supplied the global market and kept its promises," he said.wncy+2

A Global Chip Network Takes Shape

Lai pointed to TSMC's Taiwan Semiconductor Manufacturing Company Limited ↘ 0.32% expanding footprint abroad as proof of Taiwan's commitment to supply chain resilience. The company raised its total planned investment in Arizona to $265 billion in July after announcing an additional $100 billion. Lai also noted that TSMC's semiconductor fab in Dresden, Germany, is expected to begin production by the end of next year, while its investments in Japan are progressing.focustaiwan+2

The president cited figures showing that Nvidia ↘ 1.51% procures more than NT$3 trillion annually in Taiwan, while Micron ↘ 2.64% has invested over NT$1.4 trillion and AMD Advanced Micro Devices, Inc. ↘ 2.36% has expanded research and development spending to more than NT$300 billion.focustaiwan

U.S. Ties and Lingering Tensions

In a pre-recorded video played at the event, U.S. Under Secretary of State for Economic Affairs Jacob Helberg called semiconductors "the single most important technology of our lifetime" and said Taiwan's investments in the United States are strengthening the American manufacturing base. "The world has learned, sometimes the hard way, that concentration without resilience is a vulnerability," Helberg said.taipeitimes+2

The remarks come against a backdrop of friction. President Donald Trump has at times accused Taiwan of "stealing" American semiconductor business, a characterization Taiwan's government has called unfair even as it encourages companies to expand U.S. operations.wncy+1

Europe and Beyond

Speaking later at a Taiwan-EU semiconductor forum on the sidelines of SEMICON, Lai urged European nations to finalize double-taxation and investment agreements with Taiwan to unlock deeper industrial cooperation. TSMC is building its first European fab in Germany with a €3.5 billion investment. The global semiconductor market is estimated to exceed $1.5 trillion in 2026, Lai noted, underscoring that no single country can sustain the full supply chain alone.devdiscourse+1