Taiwan is actively seeking to enhance its ties with the European Union in exchange for investments in its chip industry. The government of the island is aiming to secure a free trade agreement with the EU and foster increased cooperation in research and development.
As a major player in the global chip industry, Taiwan holds significant importance for the EU’s endeavors to reduce its dependence on China in the field of semiconductors. The shortage of chips faced by the EU has disrupted the production of various goods, ranging from cars to smartphones.
Taiwan aims to leverage its prominent position as a leading chipmaker to strengthen its negotiations with the EU. Furthermore, the Taiwanese government is keen to attract greater investments from European companies.
While the EU is interested in forging closer ties with Taiwan, it must also remain mindful of China’s sensitivities. China claims sovereignty over Taiwan and has cautioned the EU against deepening its connections with the island.
Nevertheless, despite China’s warnings, the EU is expected to proceed with efforts to foster closer ties with Taiwan. With challenges such as the chip shortage and the conflict in Ukraine, the EU is actively seeking partners who can assist in addressing these issues, and Taiwan is perceived as a valuable ally.
Closer ties between Taiwan and the EU present numerous benefits for Taiwan, which include:
- Increased investments in the chip industry.
- Access to the EU’s single market.
- Enhanced cooperation in research and development.
- A stronger representation in international organizations.
Similarly, the EU stands to gain several advantages from forging closer ties with Taiwan, such as:
- Reduced dependence on China for semiconductors.
- Access to Taiwan’s expertise in the chip industry.
- A stronger partner in the Indo-Pacific region.
While the potential benefits of closer Taiwan-EU ties are evident, it remains to be seen whether both parties can overcome the challenges and reach an agreement.
