US thanks Taiwan for helping to resolve automotive chip shortages at trade meeting

Integrated circuits on a circuit board. The semiconductor industry was in focus during the US-China trade war.

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The United States thanked Taiwan on Friday for its help in resolving a shortage of automotive chips that hampered production, but there was no discussion about prioritizing the manufacture of these chips, Taiwan’s Economy Minister Wang Mei-hua said after high-level meeting.

Car factories around the world are closing assembly lines because of chip shortages, which in some cases have been exacerbated by the actions of the former US government against Chinese chip factories.

Taiwan, home to technology companies such as Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contracted chip maker, has become the front and center of efforts to resolve the shortage.

“The American side thanked us for helping with this,” Wang told reporters about the meeting, saying he had senior executives from companies like TSMC and Qualcomm in attendance.

But she said the focus of the talks is not on automotive chips and the issue of prioritizing their production has not been raised.

Wang said TSMC also discussed its new $ 12 billion plant planned in the US state of Arizona, although she did not give details.

TSMC did not immediately respond to a request for comment on the meeting.

The shortage of automotive chips has affected Volkswagen, Ford Motor, Subaru, Toyota Motor, Nissan Motor, Fiat Chrysler and other car manufacturers.

The closed-door event, accompanied by the Taiwanese minister and what she described as “senior US officials”, is the first high-profile exchange announced between Taiwan and the Biden government, which took office on January 20.

The State Department said last week that Deputy Deputy Secretary for Trade Policy and Negotiations, Matt Murray, would participate.

The US de facto ambassador to Taiwan, Brent Christensen, appeared and was seen getting into his car after the meeting ended.

Despite the lack of formal diplomatic ties, the United States is Taiwan’s most important international financier and arms supplier.

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