Taiwan currently manufactures approximately 90% of the global supply of advanced logic chips. This dominant market position serves as the foundation for the island's recent diplomatic efforts at the SEMICON Taiwan 2026 trade show, which hosted 18 national pavilions and officials from the US and the EU.
Taiwanese companies plan to invest an additional $20 billion in the United States. This follows a January 2026 agreement where local firms committed $250 billion to diversify production, supported by $250 billion in government guarantees. TSMC's individual investment in Arizona is valued at $265 billion.
The European Union is leveraging its Chips Act 2.0 to foster closer collaboration with Taiwan. Officials emphasize that European semiconductor goals depend on partnerships with manufacturers capable of large-scale production of cutting-edge silicon, which is essential for AI models and autonomous systems.
President Lai Ching-te and Economy Minister Kung Ming-hsin used the event to highlight Taiwan's role as a global partner. The strategy focuses on deepening technological alliances with Western nations to create a robust bloc, while China continues to lag behind TSMC in advanced process technology.