Taiwan's Chip Strength Rooted in Democracy, Rule of Law: President

Taiwan's dominance in semiconductor manufacturing is a direct outcome of its democratic governance and adherence to the rule of law, President Lai Ching-te said on Tuesday, framing the island as a dependable partner in global technology supply chains.

Speaking at the SEMICON trade show in Taipei, Lai highlighted that Taiwan's complete semiconductor cluster offers fast, flexible, and efficient manufacturing. He stressed that this capability, built on democratic foundations, has allowed Taiwan to consistently meet global demand and honour its commitments.

The remarks come as Taiwan seeks to reinforce its image as a reliable chipmaker amid geopolitical friction between China, the United States, and Europe over trade and technology. The event drew senior executives from major firms, including Microsoft and Google's parent company Alphabet.

Lai also addressed concerns about supply chain concentration. He said Taiwan is prepared to collaborate with international partners to diversify risk and build resilience against natural disasters, pandemics, or geopolitical shifts. He reiterated that Taiwan will continue to be a stable partner for the global technology industry.

US Under Secretary of State for Economic Affairs Jacob Helberg, in a pre-recorded message, said semiconductors will determine leadership in artificial intelligence and shape defence capabilities. He acknowledged Taiwan's investments in the United States, noting that the world has learned that concentration without resilience is a vulnerability.

Taiwan faces pressure from Washington to reduce the global concentration of chipmaking on the island. TSMC, the world's largest contract chipmaker, is investing $265 billion in new factories in Arizona. US President Donald Trump has previously criticised Taiwan for taking American semiconductor business, a view the Taiwanese government disputes.