Taiwan's chip prowess is built on democracy and rule of law, president says

​Taiwan's semiconductor prowess is built on the foundations of democracy and rule of law, becoming a trusted international partner that keeps its promises to supply the world, President Lai Ching-te ‌said on Tuesday.

Taiwan is home to TSMC, the world's largest contract chipmaker and main producer of the advanced chips powering the AI trend. Amid tensions between China and the U.S. and Europe over trade and technology, Taiwan has sought to promote itself as a reliable, democratically governed ‌semiconductor manufacturer.

Speaking at the SEMICON trade show in Taipei, which this year is being attended by senior executives from ‌companies including Microsoft and Alphabet Inc's Google, Lai said AI computing power requires chips and global collaboration. "Over the decades, Taiwan has built a complete semiconductor cluster, possessing fast, flexible, and highly efficient manufacturing capabilities, and on the foundation of democracy and the rule of law, has stably supplied the global market and kept its ⁠promises," he ​added.

Taiwan has faced pressure from ⁠the U.S., its most important international backer and arms supplier, to reduce the heavy global concentration of chipmaking on the island, and TSMC is investing $265 billion ⁠to build factories in Arizona. U.S. President Donald Trump has on occasion criticised Taiwan for "stealing" American semiconductor business, a perception Taiwan's government says is unfair ​even as it has backed its companies to increase their U.S. investments.

Speaking in a pre-recorded video message to ⁠SEMICON played shortly before Lai spoke, Jacob Helberg, U.S. under secretary of state for economic affairs, said semiconductors will shape who leads in AI, how defence capabilities will ⁠evolve, ​and "who sets the terms of the global economy for the next generation". "Now, Taiwan is investing in the United States, joining us in building up our manufacturing base because the world has learned, sometimes the hard way, that concentration without resilience is ⁠a vulnerability," he added.

Lai said that Taiwan will work with countries around the world on chips in the face of ⁠natural disasters, pandemics or "geopolitical shifts" ⁠to diversify risk and jointly build a more resilient supply chain. "Taiwan has the capability to manufacture the world's most advanced chips, and will cherish the trust built with international partners over decades, ‌continuing to be ‌a stable and reliable partner for the global technology industry."