Taiwan is home to the world’s largest contract chipmaker, TSMC, a major supplier to companies including Apple and Nvidia, and a crucial part of the developing AI industry.
Taiwan also runs a large trade surplus with the US, which surged 83 per cent last year, with the island’s exports to the US hitting a record US$111.4 billion, driven by demand for high-tech products such as semiconductors.
Lai said that the US is Taiwan’s largest foreign investment destination and that Taiwan is the US’ most reliable trade partner.
Trump has also previously criticised Taiwan, which faces a growing military threat from China whose government claims the island as its own territory, for not spending enough on defence, a criticism he has made of many US allies.
“Taiwan must demonstrate our determination to defend ourselves,” Lai said, adding his government is working to propose a special budget this year to boost defence spending from 2.5 per cent of its GDP to 3 per cent.
Source: CNA
