Taiwan ‘Completely happy’ to See Chip Funding in EU, Seeks Deeper Ties

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

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

Whereas Taiwan and the EU held-high stage 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 yr in the past that it was within the early phases of reviewing a possible growth into Germany.

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

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

Within the face of sustained Chinese language political and navy 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 yr.

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

“Our interactions with america have been relatively 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 the direction of and information 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 objective, they weren’t ruling out offers which are at the moment “extra achievable”.

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

© Thomson Reuters 2022