TAIPEI, January 15, 2026 — Taiwan is positioning itself as a key strategic partner for the United States in artificial intelligence, leveraging its dominance in advanced semiconductor manufacturing to secure long-term access to U.S. technology and investment amid escalating U.S.-China rivalry.
Taiwan’s National Science and Technology Council (NSTC) outlined the strategy in a recent policy document, emphasizing deeper collaboration with American firms to co-develop AI chips, software, and applications.
The plan includes incentives for U.S. companies to expand R&D and production facilities on the island, while offering priority access to Taiwan’s cutting-edge manufacturing capacity.
NSTC Minister Wu Tsung-Tsong stated that Taiwan’s role as the world’s leading producer of advanced chips—accounting for over 90% of the most sophisticated nodes—gives it leverage to become an indispensable AI ally for the U.S. “We are not just a manufacturing base; we want to be a full strategic partner in the AI value chain,” Wu said.
The push follows the U.S. CHIPS and Science Act, which allocated billions to bring semiconductor production onshore.
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has committed to building three new U.S. fabs in Arizona with $65 billion in total investment.
In return, Taiwan seeks assurances that U.S. export controls on AI hardware will not disrupt its own supply of critical tools and technology.
Taiwan’s strategy also involves strengthening domestic AI capabilities. The government has earmarked NT$100 billion ($3.1 billion) over five years for AI research, talent development, and startup incubation. Key focus areas include generative AI, edge computing, and AI applications in manufacturing and healthcare.
The plan coincides with U.S. efforts to diversify supply chains away from China. Taiwan’s geographic proximity to China and its role in producing chips for Nvidia, AMD, and Apple make it a critical node in the global AI ecosystem.
Analysts note that Taiwan’s proposal comes as Beijing accelerates its own chip ambitions despite U.S. restrictions. A successful partnership could lock in U.S. support for Taiwan’s defense and economic security.
The NSTC document is available on the council’s official site . TSMC’s U.S. expansion details can be found in its investor relations release.
