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President Lai Ching-te Frames Taiwan's Semiconductor Dominance as a Tool for Shared Prosperity and Geopolitical Security

President Lai Ching-te framed Taiwan's dominance in advanced chipmaking as a tool for shared prosperity and geopolitical security during the SEMICON Taiwan 2026 trade show. He argued that the island's chip strength rests on democracy and the rule of law rather than just engineering, pitching Taiwan's position to governments that depend on its technology. Taiwan currently produces approximately 90% of the world's most advanced logic chips. To maintain its position, the administration is negotiating for investment commitments and technology sharing from allies. For example, Taiwanese firms plan another $20 billion in investment in the US, in addition to $250 billion in cross-border manufacturing pledges. While the US exerts pressure on Korean memory makers to relocate production, Taiwan is leveraging its role as a primary supplier for AI accelerators to secure trade access and diplomatic standing. The administration is positioning these overseas investments as additions to its domestic base rather than substitutes, aiming to balance global demand with domestic manufacturing capacity.

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