Taiwanese President Lai Ching-te has pledged to talk to the United States about President Donald Trump's concerns about chip production and to increase U.S. investment and imports from the country while spending more on defense, Reuters quoted him as saying.
Trump has previously been critical of Taiwan, saying he aims to restore semiconductor chip production to the United States and repeating claims that Taiwan has taken away an industry he wanted back to the United States.
Speaking to reporters after a National Security Council meeting at the White House, Lai noted that the global semiconductor supply chain is an ecosystem in which division of labor between different countries is important.
"We, of course, "We are aware of President Trump's concerns," Lai said.
"The Taiwanese 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.
Democratic countries, including the United States, should unite to build a global alliance for AI chips and a "democratic supply chain" for advanced chips, Lai said.
"While we recognize that we have the advantage in semiconductors, we also see Taiwan's responsibility to contribute to the prosperity of the international community."
Taiwan is home to the world's largest contract chipmaker, TSMC - a major supplier to leading companies including Apple, Nvidia.
TSMC is investing $65 billion in new factories in the US state of Arizona, a project that began in 2020 during Trump's first administration.
A senior Taiwanese security official, speaking to reporters on condition of anonymity, said that if TSMC considers it possible to increase its investment in the US, the Taiwanese government would help in the negotiations.
The official added that communication between Taiwanese and US officials in the areas of economy, security and defense is currently "quite good" and "strong support is felt from the United States".
Trump hailed Taiwan last week after a joint US-Japanese statement following Japanese Prime Minister Shigeru Ishiba's visit to Washington called for "maintaining peace and stability in the Taiwan Strait" and expressed support for "Taiwan's meaningful participation in international organizations".
But Taiwan also has a large trade surplus with the United States, which grew 83% last year, with the island's exports to the United States reaching a record $111.4 billion, driven by demand for high-tech products such as semiconductors.
Lai stressed that the United States is the largest destination for foreign investment in Taiwan and that Taiwan is the United States' most reliable trading partner.
Trump has also previously criticized Taiwan, which faces a growing military threat from China, for not spending enough on defense, a criticism he leveled at many U.S. allies.
"Taiwan must demonstrate our resolve to defend ourselves," Lai said, adding that his government was working to propose a special budget this year to increase defense spending from 2.5% of its GDP to 3%
His government is embroiled in a standoff with parliament, where opposition parties have a majority, over budget cuts, including defense spending.
"Of course, more and more friends and allies have expressed concern, worried about whether Taiwan's resolve to defend itself has weakened," Lai said.