Taiwan ‘Happy’ to See Chip Firms Invest in EU, Seeks Deeper Ties Amid Global Chip Shortage

Taiwan could be “joyful” to see its chip companies put money into the European Union however deeper ties with the bloc akin to Taipei’s relations with Washington might assist pave the way in which for that, a senior Taiwanese official instructed Reuters.

The EU has been courting Taiwan, a significant semiconductor producer, as one of many “like-minded” companions it wish to work with below the European Chips Act unveiled in February, because it tries to take care of a persistent world chip scarcity.

Whereas Taiwan and the EU held-high degree commerce talks final month, lower than every week after that assembly Taiwan Semiconductor Manufacturing Firm Restricted (TSMC) stated it had no concrete plans for factories in Europe, having flagged a 12 months in the past that it was within the early levels of reviewing a possible growth into Germany.

Taiwan Deputy Economic system Minister Chen Chern-chyi, whose portfolio covers financial relations with Europe, stated late Monday that whereas he couldn’t communicate on behalf of chip corporations, he famous they haven’t stated they don’t seem to be going to Europe.

“However the authorities’s place is that we’re joyful to see our corporations having a worldwide footprint, together with the USA and Europe, who’re each our like-minded companions. On a coverage degree we’re in fact very joyful to see them deploying globally , and could be glad to see it occur,” he stated.

Within the face of sustained Chinese language political and army strain designed to drive Taiwan to simply accept China’s sovereignty claims, Taipei has been eager to bolster ties with different democracies even within the absence of formal diplomatic relations.

In a single wrinkle for EU ambitions, Taiwan’s GlobalWafers Co Ltd failed in February in a EUR 4.35 billion (roughly Rs. 34,709 crore) takeover try of German chip provider Siltronic.

Chen stated he was not conscious the ministry, which has to approve large-scale oversees investments, had acquired any new purposes for EU chip tasks to this point this 12 months.

Taiwan, he added, needed to have the form of shut, institutionalized commerce, expertise and financial dialogue ties with the EU that they’ve with the USA, the place TSMC is constructing a $12 billion (roughly Rs. 95,517 crore) manufacturing unit and GlobalWafers a $5 billion (roughly Rs. 39,805 crore) plant.

“Our interactions with the USA have been somewhat extra, communication is nearer. We additionally hope to develop the identical shut relationship with the EU,” Chen stated.

“If it is like this, it will be very useful for our corporations for his or her consideration in direction of and data of Europe.”

Taiwan has additionally been pushing for a bilateral funding settlement with the EU, although there was no progress.

Chen stated whereas that is still a coverage aim, they weren’t ruling out offers which are presently “extra achievable”.

“We even hope to have a free commerce settlement with the EU, which might be one of the best. The EU has a lot of FTAs ​​with different international locations, and if the EU is prepared, we’re too.”

© Thomson Reuters 2022

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