Taiwan seeks deeper ties in Europe after US$3.8 billion TSMC chip plant deal in Germany to counter diplomatic isolation
- Taiwan’s economy minister said the new TSMC plant will drive deeper engagement with the EU, which has shown no desire for a Bilateral Investment Agreement
- The new plant in Germany still needs approval by Taiwan, which is not expected to be an obstacle because it focuses on less advanced chips for the auto industry
For Taiwan, under increasing pressure from Beijing to accept China’s sovereignty claims over the island, the investment in a new factory is a show of goodwill towards Europe, even as the European Union has shown no desire to proceed with a Bilateral Investment Agreement, or BIA, Taipei has long hoped for.
“TSMC’s investment in Europe will help bring even closer cooperation between Taiwan and the EU,” Taiwan Economy Minister Wang Mei-hua told reporters in Taipei, when asked if signing the BIA would get more Taiwanese chip makers to the bloc.
“Just like how Taiwan and the United States are continuing to strengthen cooperation, like the ‘21st Century’ trade initiative and double tax avoidance, TSMC going to Europe will certainly strengthen bilateral relations in the future,” she added, referring to a recently signed trade deal with Washington.
Taiwanese officials, while pointing out TSMC’s investments are a company decision, have also said that European countries should strengthen ties with Taiwan if they want continued semiconductor cooperation.
Taiwan has repeatedly called for progress on a BIA with the European Union. The EU included Taiwan on its list of trade partners for a potential bilateral investment agreement in 2015, but it has not held talks with Taiwan on the issue since.
