Washington’s support for Taiwan, Ingrid Larson, Managing Director of the Washington Office of the American Institute in Taiwan (AIT), arrived in Taipei on Tuesday. The AIT, which functions as the de facto US embassy in Taiwan, announced her trip as part of ongoing efforts to strengthen ties amid tensions over Taiwan’s defense and semiconductor industries.
The timing of Larson’s visit comes as Taiwan faces renewed scrutiny from former US President Donald Trump, the Republican front-runner in the upcoming 2024 US presidential election. Trump recently called for Taiwan to contribute financially to the United States for its defense, while also accusing the island nation of taking away US semiconductor business.
AIT’s official statement regarding Larson’s visit emphasized the “United States’ strong commitment to Taiwan” and noted that the purpose of her meetings, taking place from October 28 to November 1, is to enhance a broad range of US-Taiwan partnerships, from regional security to trade, investment, and cultural exchange.
“While in Taiwan, she will discuss continued US-Taiwan collaboration on issues of mutual interest such as regional security, mutually beneficial trade and investment, and people-to-people, educational, and cultural ties,” AIT added in its release.
The timing of Larson’s visit reflects ongoing tensions and cooperation in the Indo-Pacific. As the US is Taiwan’s primary international supporter and largest arms supplier, Washington’s diplomatic presence, albeit unofficial, holds substantial influence. While the US does not officially recognize Taiwan as a sovereign nation, its unofficial but resolute backing of the self-governed island remains one of the most strategically significant aspects of US-China-Taiwan relations.
Former President Donald Trump has raised concerns in Taiwan over his stance on the island’s defense costs and semiconductor industry. Speaking on “The Joe Rogan Experience” podcast, Trump criticized Taiwan’s role in the American semiconductor sector and demanded that Taiwan increase its payments to the US for security guarantees. He argued that Taiwan’s defense burden is primarily shouldered by the United States and described the island’s semiconductor industry as having “stolen” American jobs and intellectual property.
“Taiwan, they stole our chip business,” Trump said, referring to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker. “They want us to protect them, and they don’t pay us for the protection,” he continued.
These comments rattled markets, with TSMC’s American Depositary Receipts dropping 4.3% on Monday, followed by a further 1% decline on Tuesday in Taipei. TSMC, a crucial supplier to major technology firms like Nvidia, represents a pillar of Taiwan’s economy, employing over 65,000 workers domestically and playing a key role in global technology supply chains. The company’s presence in the US has also grown in recent years, with TSMC constructing a semiconductor fabrication plant in Arizona.
Taiwanese officials responded to Trump’s remarks with caution, attempting to maintain a balanced stance. Premier Cho Jung-tai emphasized the strength of Taiwan-US relations and reassured citizens that both major American political parties understand and value Taiwan as a “like-minded democratic ally.”
“I also believe that the major US political parties have an absolutely high degree of consensus on the understanding of the US-Taiwan relationship,” he said, underscoring Taiwan’s bipartisan support in the United States, regardless of individual presidential opinions.
Economy Minister Kuo Jyh-huei took a diplomatic approach as well, stating that Taiwan respects the remarks of “international friends” while emphasizing that Taiwan-US relations are steady and built on shared values. In response to Trump’s call for Taiwan to pay more for defense, Kuo avoided direct confrontation, highlighting Taiwan’s steady procurement of arms from the US and its commitment to national defense.
Although Taiwan does not have a formal defense treaty with the United States, Taiwan’s defense relies heavily on American arms and equipment. The US has provided billions of dollars in arms sales over the years, including advanced missile systems, F-16 fighter jets, and naval defense systems. In 2022 alone, the Biden administration approved a $1.1 billion arms package for Taiwan, consisting of radar and missile support systems.
Since China views Taiwan as a breakaway province, these arms sales have long been a source of contention in Beijing-Washington relations. However, with Taiwan increasingly threatened by China’s military drills and incursions into its airspace, the United States’ support has been seen as indispensable for Taiwan’s security. China has significantly ramped up military exercises in the Taiwan Strait, causing alarm in Taipei and leading Taiwan to bolster its defense budget. In September, Taiwan proposed a record $19 billion military budget, signaling its determination to counteract the Chinese military presence near its borders.
Trump’s relationship with Taiwan has been notably strong since his first term in office (2017-2021), marked by significant arms sales and the controversial 2016 phone call with Taiwan’s then-President Tsai Ing-wen, which broke diplomatic precedent and prompted a sharp rebuke from Beijing. Trump’s vocal support for Taiwan during his administration, however, coexisted with a transactional view of allies and a push for increased financial contributions to US-led security arrangements.
This transactional approach remains a cornerstone of Trump’s foreign policy, and if reelected, Trump may press Taiwan, and other allies, to contribute more significantly to defense expenses. Such an approach would likely shape US-Taiwan relations, particularly if Taiwan feels pressured to make additional financial commitments to maintain American security guarantees.
With Trump as the Republican frontrunner, Taiwan’s government is weighing the implications of a possible second Trump term. Over the past three months, two former Trump administration officials, Kelly Craft and Nikki Haley, have visited Taiwan. In their statements, both officials highlighted Taiwan’s need to increase its security contributions, echoing Trump’s call for allies to “carry their weight.”
Craft, who served as Trump’s ambassador to the United Nations, spoke at a security forum in Taipei, reiterating that if Trump returns to office, he would expect Taiwan and other allies to enhance their role in defense. “Trump is going to expect some things from our friends and allies across the world, particularly friends like Taiwan who are under threat. He will expect you to carry your weight as a security partner,” Craft remarked, signaling Taiwan’s potential position under a future Trump administration.
TSMC, the world’s leading chipmaker, lies at the intersection of global technology and geopolitical competition. As TSMC supplies key semiconductor components for critical sectors, including the US defense industry, the company has become a focal point in the US-China tech rivalry. The Biden administration has enacted policies to curtail China’s access to advanced semiconductors, with TSMC playing an essential role in these efforts by prioritizing US supply needs.
Trump’s criticism of TSMC and the Taiwanese semiconductor industry has highlighted broader issues regarding the global supply chain. TSMC has invested $12 billion in an Arizona semiconductor plant, which is set to produce 5nm chips, a key technology for defense and advanced computing. The expansion aligns with the US government’s agenda to enhance domestic semiconductor production as a safeguard against supply chain disruptions and Chinese influence.
Amid escalating tensions with China, Taiwan continues to seek reassurance from Washington. Taiwan’s defense strategy increasingly relies on both military readiness and diplomatic support, particularly from the United States. The island nation has called for calm but is also preparing for the potential of Chinese aggression. China’s recent military exercises, including a new round of war games earlier this month, have intensified the urgency for Taiwan to solidify its defense partnerships and strengthen its self-defense capabilities.
For the United States, Taiwan is a crucial partner in the Indo-Pacific, both for strategic military positioning and for the semiconductor industry that powers much of the global economy. Larson’s visit reaffirms the United States’ dedication to maintaining stability and a strong partnership with Taiwan amid rising challenges. But with Trump’s foreign policy rhetoric influencing the 2024 election, Taiwan faces an uncertain path forward, balancing defense needs, diplomatic relations, and economic resilience in an increasingly polarized world.
