In the face of worries regarding the global supply chain and increased tensions in the Indo-Pacific area, Taiwan will continue its relationship with the US and other nations on expanding semiconductor manufacturing, according to Wang Mei-Hua, the Taiwanese Minister for Economic Affairs.

Wang said, during an interview at the Center for Strategic and International Studies, that “Taiwan will continue to work closely with our global partners, especially the United States, to engage in the development of advanced semiconductor manufacturing.”

According to Wang, Taiwan's semiconductor manufacturing sector is both crucial to the global high-tech economy and dependent on other nations for its success. Additionally, the market impact from Taiwan's involvement in a conflict would be felt not only in the US but also in China.

The announcement followed heightened rivalry between Washington and Beijing in the Indo-Pacific region and across the semiconductor sector. In an effort to match Chinese gains in the field, US President Joe Biden signed legislation in August providing $52 billion in subsidies for domestic semiconductor manufacture.

The COVID-19 outbreak and accompanying public health measures in China and across the world put a strain on the semiconductor supply chain. This ultimately led nations to reevaluate and change their sourcing strategies for the crucial components of contemporary computing systems.

US lawmakers' trips to Taiwan, notably those of House Speaker Nancy Pelosi, despite of Beijing's warnings, also contributed to the current deterioration in US-China relations. 

Under the Biden administration, US-Taiwan relations are solid and expanding, according to Wang who further noted that there is active communication between the US and Taiwan, including on supply chain collaboration.

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