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Taiwan and EU Hold Promising Talks on Chip Trade

Taiwan and EU Hold Promising Talks on Chip Trade

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Taiwan, a semiconductor powerhouse, and the European Union will hold high-level trade talks today, CNBC wrote, citing Reuters. The EU is pushing to boost its chip industry.

The bloc passed the European Chips Act in February, mentioning Taiwan as a “like-minded” potential partner. Taiwan also intends to form a bilateral investment agreement with the EU.

Taiwan has the biggest chipmaker in the world

The Asian country is home to TSMC, the biggest chipmaker in the world. It also boasts other leading semiconductor companies. Reuters’ source, who wished to remain anonymous, said Taiwan economy minister Wang Mei-hua would speak to a senior EU trade official this evening.

‘Appropriate’ time for announcement anticipated

Wang Mei-hua told reporters in Taipei late last night that Taiwan-EU relations were deepening with talks going on at all levels. She did not provide any details, assuring she would make any important announcement at the suitable time.

‘Enormous’ room for EU cooperation

According to Taiwan’s government, the room for cooperation on semiconductors with the EU is ‘enormous’. The talks will take place the day after the US agreed to launch new trade talks with Taiwan.

Overcoming the global chip shortage

Under the European plan, the EC will alleviate financing rules for cutting-edge semiconductor facilities. Supply chain issues and a global chip shortage have wreaked havoc on many industries for more than a year now.

According to Taiwanese giant TSMC, it’s still in the very early stages of working on a factory in Europe. They are currently spending $12 billion on chip production facilities in the United States.

The setbacks

In one setback for EU targets, Taiwanese tech manufacturing company GlobalWafers failed a significant industrial takeover attempt in February. They were to acquire German chip supplier Siltronic for $4.64 billion.

No formal diplomacy with Taiwan

EU member states do not have formal diplomatic relations with Taiwan, which China has territorial claims to. However, the EU has consistently demonstrated support for the island, particularly against the backdrop of souring China-EU relations over trade and the former’s human rights record.