The chip-hungry EU is hoping to tap into Taiwan’s semiconductor and microchip industry. But new talks with Taipei come amid strained relations with China, which considers Taiwan a breakaway province.

In a bid to strengthen trade relations with Taiwan and gain access to the island’s semiconductor sector, the European Union is set to hold a virtual trade dialogue with Taiwan’s economy minister Mei-Hua Wang on Thursday.

“Taiwan is a very important player in the semiconductor sector, if not the most important player,” EU Trade Commissioner Valdis Dombrovskis told the European Parliament last month.

Ming-Yen Tsai from Taiwan’s representation to the European Union and Belgium told DW that he was optimistic about the upcoming talks and stressed that the EU and Taiwan share the same core values of democracy, human rights, free market and the rule of law.

“We also share complementary policies on industrial development and climate change,” he said. “Taiwan hopes the two sides will continue to deepen trade and investment relations, as well as exchanges and discussions on issues of mutual interest to further deepen bilateral cooperation.”

The trade talks come after repeated delays as Brussels fears it will anger Beijing, which considers Taiwan a breakaway province.

But Juja Anna Ferenczi, associate professor at National Dong Hwa University in Taiwan and former political adviser in the European Parliament, told DW that there is now clearly momentum in EU-Taiwan relations, and trade with Taiwan is not really an afterthought. .

“Given everything that has happened since the end of the pandemic, China’s economic coercion against Lithuania , disinformation campaigns and most recently its diplomatic support for Russia’s war in Ukraine, there is a growing desire in the EU to engage Taiwan and discussions on trade with the island are back on the table. The EU is keen to find ways to cooperate in specific areas of interest, such as the semiconductor sector and the technology supply chain, as the Commission has also made this clear,” she said.

“Global circumstances were different in the past as the EU tried to balance its relationship with China. But now the bloc’s line of thinking has fundamentally changed. The recent EU-China summit did not go well, and Brussels was disappointed by Beijing’s actions. So in this context, obviously, Taiwan is no longer treated as cautiously as it used to be,” she added.

Taiwan’s semiconductor sector

Materials such as semiconductors and microchips are essential for almost everything we use to support our economy.

According to Martin Russert, senior researcher and director of the Technology and National Security Programme at the Center for a New American Security (CNAS), Taiwan’s semiconductor sector in particular plays a huge role in the world, forcing countries to compete to gain secure access to its semiconductors.

“Taiwan Semiconductor Corporation accounts for 92% of the most advanced semiconductor manufacturing on the planet, making Taiwan as a whole responsible for approximately half of global semiconductor manufacturing. So it also makes the country strategically important because semiconductors are important for military systems. too,” he told DW.

Furthermore, the EU is also counting on Taiwan to support its €45 billion European Chip Act, as Taiwan produces some of the most advanced microchips in the world.

However, Rasser stressed that any negotiations for increased investment in the semiconductor sector must be conducted at a global level to improve the sustainability of global supply chains.

“Taiwan, of course, is a manufacturing hub. The Netherlands, Germany and Japan also supply the most sophisticated semiconductor manufacturing equipment. In addition, the United States is very strong in semiconductor development. Thus, each of these countries has particular expertise. and capabilities that they bring, so negotiations require global cooperation,” he added.

A spokesman for the EU Trade and Agriculture Commission shared a similar view and told DW that the bloc’s new Indo-Pacific strategy also offers a framework for exploring more supply chain cooperation with Taiwan, as well as increasing Taiwanese investment in Europe, which remains very low

EU considers expanding semiconductor trade with Taiwan

The chip-hungry EU is hoping to tap into Taiwan’s semiconductor and microchip industry. But new talks with Taipei come amid strained relations with China, which considers Taiwan a breakaway province.

In a bid to strengthen trade relations with Taiwan and gain access to the island’s semiconductor sector, the European Union is set to hold a virtual trade dialogue with Taiwan’s economy minister Mei-Hua Wang on Thursday.

“Taiwan is a very important player in the semiconductor sector, if not the most important player,” EU Trade Commissioner Valdis Dombrovskis told the European Parliament last month.

Ming-Yen Tsai from Taiwan’s representation to the European Union and Belgium told DW that he was optimistic about the upcoming talks and stressed that the EU and Taiwan share the same core values of democracy, human rights, free market and the rule of law.

“We also share complementary policies on industrial development and climate change,” he said. “Taiwan hopes the two sides will continue to deepen trade and investment relations, as well as exchanges and discussions on issues of mutual interest to further deepen bilateral cooperation.”

The trade talks come after repeated delays as Brussels fears it will anger Beijing, which considers Taiwan a breakaway province.

But Juja Anna Ferenczi, associate professor at National Dong Hwa University in Taiwan and former political adviser in the European Parliament, told DW that there is now clearly momentum in EU-Taiwan relations, and trade with Taiwan is not really an afterthought. .

“Given everything that has happened since the end of the pandemic, China’s economic coercion against Lithuania , disinformation campaigns and most recently its diplomatic support for Russia’s war in Ukraine, there is a growing desire in the EU to engage Taiwan and discussions on trade with the island are back on the table. The EU is keen to find ways to cooperate in specific areas of interest, such as the semiconductor sector and the technology supply chain, as the Commission has also made this clear,” she said.

“Global circumstances were different in the past as the EU tried to balance its relationship with China. But now the bloc’s line of thinking has fundamentally changed. The recent EU-China summit did not go well, and Brussels was disappointed by Beijing’s actions. So in this context, obviously, Taiwan is no longer treated as cautiously as it used to be,” she added.

Taiwan’s semiconductor sector
Materials such as semiconductors and microchips are essential for almost everything we use to support our economy.

According to Martin Russert, senior researcher and director of the Technology and National Security Programme at the Center for a New American Security (CNAS), Taiwan’s semiconductor sector in particular plays a huge role in the world, forcing countries to compete to gain secure access to its semiconductors.

“Taiwan Semiconductor Corporation accounts for 92% of the most advanced semiconductor manufacturing on the planet, making Taiwan as a whole responsible for approximately half of global semiconductor manufacturing. So it also makes the country strategically important because semiconductors are important for military systems. too,” he told DW.

Furthermore, the EU is also counting on Taiwan to support its €45 billion European Chip Act, as Taiwan produces some of the most advanced microchips in the world.

However, Rasser stressed that any negotiations for increased investment in the semiconductor sector must be conducted at a global level to improve the sustainability of global supply chains.

“Taiwan, of course, is a manufacturing hub. The Netherlands, Germany and Japan also supply the most sophisticated semiconductor manufacturing equipment. In addition, the United States is very strong in semiconductor development. Thus, each of these countries has particular expertise. and capabilities that they bring, so negotiations require global cooperation,” he added.

A spokesman for the EU Trade and Agriculture Commission shared a similar view and told DW that the bloc’s new Indo-Pacific strategy also offers a framework for exploring more supply chain cooperation with Taiwan, as well as increasing Taiwanese investment in Europe, which remains very low

According to a report last year by the European External Action Service, only 2.1% ($7.3 billion) of Taiwan’s global foreign direct investment (FDI) had been invested in the EU by the end of 2020. Most Taiwanese FDI was invested in China