The president of Taiwan Lai Ching-te has pushed for the signing of an investment and trade deal with the European Union (EU) for further cooperation in fields such as semiconductors and AI.

At the Taiwan-EU investment forum in Taipei, Lai Ching-te invited the EU to form a “strong democratic umbrella” and forge safe supply chains for global democracies.

"Looking to the future, Taiwan hopes to take an innovative approach towards the signing of an economic partnership agreement with the EU," he said. "This would not only make both our economies more resilient and secure but also ensure the stable operation of global supply chains.”

The EU said it considers Taiwan a “like-minded” partner under the European Chips Act, a legislative initiative by the EU aimed at bolstering Europe's semiconductor industry.

Key objectives of the plan include strengthening Europe's competitiveness and resilience in semiconductor technologies and applications; doubling the EU's global market share in semiconductors from 10 per cent to at least 20 per cent by 2030; and mobilising over €43 billion in public and private investments to support the semiconductor sector.

In August 2023, Taiwan Semiconductor Manufacturing Co. completed an investment of around €3.5 billion for the launch of a major new chip plant in Dresden. This facility is expected to be a key supplier to European industries, particularly the automotive sector.

Maria Martin-Prat, deputy head of the European Commission's Directorate-General for Trade, expressed enthusiasm for the partnership initiative.

“Taiwan, a vibrant democracy with an open economy, is a trusted partner in promoting our economic security,” she said.

Taiwan’s current free trade agreements with Europe include the Enhanced Trade Partnership (ETP), an initiative aimed at strengthening trade and investment relations between Taiwan and the United Kingdom.

Key priorities included promoting collaboration on digital technologies and addressing barriers to digital trade, encouraging sustainable investments, and supporting efforts to achieve net-zero targets.

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