ISTANBUL

Taiwan leader Lai Ching-te said Friday he will encourage businesses to invest in the US and communicate more with Washington to address President Donald Trump's concerns over the semiconductor industry.

"With respect to President Trump’s concerns about our semiconductor industry, the government will act prudently, strengthen communications between Taiwan and the US, and promote greater mutual understanding," Lai told a news briefing after holding a meeting of the National Security Council.

“We are willing to collaborate with the US and our other democratic partners to develop more resilient and diversified semiconductor supply chains. Leveraging our strengths in cutting-edge semiconductors, we will form a global alliance for the AI chip industry and establish democratic supply chains for industries connected to high-end chips. Through international cooperation, we will open up an entirely new era of growth in the semiconductor industry,” he added.

Trump on Thursday said Taiwan had taken semiconductor chip business away from the US and he wanted it back. Taiwan’s TSMC is the world’s largest chipmaker.

Lai said Taiwan has always been one of the US’s most reliable trade partners, as well as one of the most important cooperative partners of US companies in the global semiconductor industry.

In the past few years, he added, Taiwan has greatly increased both direct and indirect investment in the US. According to him, by 2024, investment surpassed $100 billion, creating nearly 400,000 job opportunities.

He said "close bilateral cooperation" will allow us to expand US investment and procurement, "facilitating balanced trade."

The Taiwanese leader also announced a “special budget allocation” to ensure Taiwan’s defense budget exceeds 3% of its GDP.

China considers Taiwan, which has mainatained its independence since 1949, as its “breakaway province.