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Taiwan Calls Semiconductors ‘Democracy Chips’ in US Meeting

Indiana Governor Eric Holcomb is making the third trip to Taiwan this month by a U.S. delegation after U.S. House Speaker Nancy Pelosi’s earlier visit infuriated China.

China imposed sanctions on Friday on Nancy Pelosi and her immediate family for her visit to Taiwan.
US Lower House Speaker Nancy Pelosi talks with Taiwan President Tsai Ing-wen in Taipei, August 3, 2022. Photo: Taiwan Presidential Office handout via Reuters.


Taiwan President Tsai Ing-wen called semiconductors “democracy chips” in a meeting with the governor of the U.S state of Indiana in Taipei, saying she wants to co-operate further with the US to ensure chip supplies to partner nations in the face of China’s threat to the industry.

“Economic security is an important pillar of national and regional security,” Tsai said. “Taiwan is willing and able to strengthen cooperation with democratic partners in building sustainable supply chains for democracy chips.”

Indiana Governor Eric Holcomb is making the third trip to Taiwan this month by a U.S. delegation after U.S. House Speaker Nancy Pelosi’s earlier visit infuriated China, which views Taiwan as its own territory.

A week after Pelosi’s visit, five U.S. lawmakers, led by Senator Ed Markey, visited Taiwan.


Military Threats

China staged extensive military exercises near Taiwan after Pelosi’s visit. Taiwan rejects Beijing’s sovereignty claims, saying only the island’s people can decide their future.

“Taiwan has been confronted by military threats from China, in and around the Taiwan Strait,” Tsai told Holcomb during a meeting at her office in Taipei. “At this moment, democratic allies must stand together and boost cooperation across all areas,” she added, in remarks carried live on her social media pages.

China has yet to comment on Holcomb’s visit.

Holcomb is due to meet representatives of Taiwan’s semiconductor companies on his visit amid an expansion of links between his state and the island, which is home to the world’s largest contract chip maker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

He talked of the efforts his state was making in supporting the tech industry, pointing to a June announcement by Taiwan’s MediaTek Inc, the world’s fourth largest chip designer by revenue, of a new design centre in Indiana in partnership with Purdue University.

“We look so forward to working with them in designing the future,” he said.


Chip Companions

Taiwan has offered some of the best high-technology talent in the world, Holcomb revealed, speaking to reporters later.

“We’re facing and specifically seeking to turn supply chain pains into supply chain gains. I think the way we get there faster, in a more resilient fashion, is by doing it together,” he said.

Holcomb oversaw the signing of a cooperation agreement between Purdue and Taiwanese electronics contract manufacturer Wistron Corp, with company chairman Simon Lin mentioning opportunities to collaborate on areas like cybersecurity and smart factories.

Taiwan has been keen to show the United States, its most important international backer, that it is a reliable friend as a global chip crunch impacts auto production and consumer electronics.

Tsai said Indiana stood to become a centre for chip technology following this month’s signing into law of a U.S. act to subsidise the domestic semiconductor industry as it competes with Chinese and other foreign manufacturers.

TSMC is building a $12 billion plant in the U.S. state of Arizona.


  • Reuters, with additional editing from Alfie Habershon


Read more:

Taiwan Says It’s Yet to be Told of Asian Chipmakers Meeting

US Ready to Start Formal Trade Talks With Taiwan

Joining China’s SMIC Was Foolish: Taiwan Chip Veteran – SCMP

Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.


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