US calls Taiwan 'vital partner' after high-level tech and AI talks on semiconductors and drones

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Senior US and Taiwanese officials held their sixth round of high-level tech and AI talks, signing agreements on AI and semiconductor supply chain security. The US State Department praised Taiwan as a vital partner whose advanced manufacturing sector fuels the AI revolution, while discussions covered drones, critical minerals, and economic security cooperation amid growing geopolitical tensions.

US Deepens Tech Cooperation with Taiwan Through Strategic Dialogue

The United States has reinforced its commitment to Taiwan through high-level tech and AI talks that underscore the island's critical role in global technology infrastructure. Under Secretary for Economic Affairs Jacob Helberg and Taiwan Economy Minister Kung Ming-hsin led the sixth round of the U.S.-Taiwan Economic Prosperity Partnership Dialogue, a forum first established in November 2020 during the first Trump administration

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. The U.S. State Department characterized Taiwan as a "vital partner" whose advanced manufacturing sector plays a key role in fueling the AI revolution, signaling the depth of economic security cooperation between the two nations

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Source: ET

Source: ET

Securing AI and Semiconductor Supply Chains Through the Pax Silica Declaration

At the core of these high-level tech and AI talks was the signing of statements on the Pax Silica Declaration, a US-led initiative designed to secure AI and semiconductor supply chains against disruption and economic coercion

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. Taiwan's position as a major producer of advanced semiconductors that power Artificial Intelligence (AI) systems makes this tech cooperation essential for both nations' national security interests. The discussions emphasized supply chain security, particularly how it relates to AI development, alongside drone component certification and cooperation on critical minerals

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. Both sides also addressed tax-related barriers to increase bilateral investment, with Taiwan continuing to push for a double taxation agreement that could unlock greater capital flows between the two economies.

Source: Reuters

Source: Reuters

Expanding Digital Economy Infrastructure and Defense Capabilities

Beyond semiconductors and drones, US-Taiwan relations now encompass critical digital infrastructure that supports the broader digital economy. The talks covered undersea cable security and low-Earth-orbit satellite cooperation, areas of increasing importance given Taiwan's accusations that China has been involved in damaging undersea telecom and internet cables

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. Taiwan is expanding its use of low-Earth-orbit satellites as backup communications infrastructure should China sever cables during a potential attack. The discussion also included training of high-tech talent, recognizing that human capital remains central to maintaining technological leadership in advanced manufacturing and AI development.

Geopolitical Stability and the Taiwan Strait

Taiwan's economy ministry emphasized that both sides agreed peace and stability across the Taiwan Strait are "crucial to global economic security and prosperity"

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. This statement carries significant weight given that Taiwan produces the majority of the world's most advanced chips, making any disruption to the island's operations a potential crisis for the global tech industry. The talks focused on highlighting progress in responding to economic coercion and pursuing mutual cooperation in third countries, suggesting both nations are building resilience against pressure tactics. China routinely objects to interactions between Taiwanese and US officials, viewing Taiwan as an internal affair, though Taiwan's government rejects Beijing's sovereignty claims. Earlier this month, the two sides reached a deal to cut tariffs on Taiwan's exports to the US and boost Taiwanese investment in semiconductors and other sectors, further cementing their economic interdependence and strengthening geopolitical stability in the region.

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