US-China tech war: Washington, Taipei agree to strengthen cooperation on semiconductor policy
- While China was not named in the statement, closer coordination between the US and Taiwan in semiconductor policy could have implications for Beijing
- The latest agreement between Washington and Taipei comes at a time when the US is trying to strengthen its domestic chip manufacturing industry
Washington and Taipei have agreed to establish a new framework to boost investment and strengthen cooperation in key technology sectors like semiconductors, a move sure to anger Beijing, which has called on the US to end official contact with Taiwan officials.
In the first virtual meeting between US commerce secretary Gina Raimondo and Taiwan’s Minister of Economic Affairs Wang Mei-hua, both sides agreed to set up a Technology Trade and Investment Collaboration (TTIC) framework, according to a readout from the US Commerce Department on Monday.
The tech-focused framework will allow both parties to “develop commercial programs and explore actions to strengthen critical supply chains”, and promote investment into the US, the statement said.
While China was not named in the statement, closer coordination between the US and Taiwan in semiconductor policy could have implications for Beijing because Chinese tech companies rely on the island’s chip makers, such as Taiwan Semiconductor Manufacturing Co (TSMC), to produce advanced chips.
TSMC’s compliance with US sanctions on Huawei Technologies Co has dealt a severe blow to the latter’s smartphone business, while the Taiwan foundry’s willingness to provide supply chain data to the US government has added to unease in Beijing, with state media Xinhua calling it part of a “plot” by Washington to contain China’s semiconductor development.