Taiwan's chips link global partners, strengthen supply chain: President

Taipei, Sept. 1 (CNA) President Lai Ching-te (賴清德) on Tuesday said Taiwan's semiconductor industry has forged new industrial connections around the world, strengthening international ties and creating a more diversified and resilient supply chain.

Speaking at the 2026 Semicon Network Summit in Taipei, Lai said Taiwan has developed a comprehensive semiconductor industry cluster over the past few decades through global division of labor and long-term cooperation, enabling fast, flexible and efficient manufacturing.

Taiwan's semiconductor capabilities have also helped create networks around the world, allowing countries to leverage their respective strengths and cooperate on research, development and production, Lai said.

Such connections can also provide mutual support in the face of natural disasters, pandemics and geopolitical shifts, he added.

With the global semiconductor market estimated to be worth more than US$1.5 trillion in 2026, the industry encompasses IC design, equipment, materials, advanced manufacturing, testing and packaging, requiring investment from businesses and countries across each segment, Lai said.

He noted that Nvidia has invested and procured more than NT$3 trillion (US$94.78 billion) worth of goods and services annually in Taiwan, while Micron has invested over NT$1.4 trillion and AMD has expanded its research and development investment to more than NT$300 billion.

Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC) announced in July that it would invest an additional US$100 billion in Arizona, Lai said, adding that TSMC's investments in Japan were also progressing smoothly.

Lai further said that TSMC's semiconductor fab in Dresden, Germany, is expected to begin production by the end of next year, contributing to local transportation, talent and industrial development.

The president thanked summit participants from 38 countries for their support of Taiwan.

He pledged that the government would continue to develop critical technologies, including silicon photonics, quantum technology and AI robotics, while improving infrastructure related to computing power, water, electricity, land and talent.

In a prerecorded video for the forum, U.S. Under Secretary of State for Economic Affairs Jacob Helberg called semiconductors the "single most important technology of our lifetime," citing their importance to AI leadership, defense capabilities and the global economy.

Helberg said Taiwan has been at the center of the semiconductor industry for decades and is now investing in the United States to strengthen its manufacturing base.

He said the world had learned that "concentration without resilience is a vulnerability," underscoring the importance of the "Pax Silica" project, which he described as a network of trusted partners committed to fair trade, reliable suppliers, the rule of law and secure technology.

Helberg urged summit participants to continue investing in and building resilient connections among partner economies, saying the United States and Taiwan are "partners in securing the technology that will shape the rest of this century."

The summit is being held in Hall 2 of the Taipei Nangang Exhibition Center ahead of SEMICON Taiwan, which will run from Sept. 2-4. The event features discussions among global semiconductor leaders, policymakers and research experts, according to its official page.