Taiwan President Lai Ching-te signed an economic partnership agreement with the European Union on Monday. The agreement says that it would boost cooperation in semiconductors and that the two sides should work together as democracies.
Taiwan has pushed the signing of investment and trade deals with the EU, which would be politically significant for Taiwan because of its diplomatic isolation and general exclusion from most global bodies and agreements.
The EU has been stating Taiwan as a “like-minded” partner under the European Chips Act to boost semiconductor production in Europe and minimize dependency on Asia, despite the lack of formal ties with the Chinese-claimed island.
Speaking at a Taiwan-EU investment forum in Taipei, Lai stated that Taiwan and the EU must form a “strong democratic umbrella” and build secure supply chains for global democracies despite the threat of expanding authoritarianism. “Looking to the future, Taiwan hopes to take an innovative approach towards signing an economic partnership agreement with the EU,” he said. Lai added that such an agreement would set a sound institutional base for further cooperation in semiconductors and AI.
Taiwan Semiconductor Manufacturing Co (TSMC) has supported Taiwanese investment in the EU. In August, TSMC launched a new chip plant in Dresden and Germany, expected to be a key supplier to European Industry and automakers.
