U.S. Diplomacy Visits Taiwan Amid Tensions in the Chip Industry

TAIPEI - Senior U.S. diplomat Ingrid Larson, responsible for managing relations with Taiwan, is in Taipei for a series of meetings aimed at strengthening the partnership between the U.S. and Taiwan. The American Institute in Taiwan announced Larson's visit, which will last from October 28 to November 1, highlighting the U.S. commitment to shared interests in relations with Taiwan, regional security, trade, and cultural exchanges.

This visit comes at a time when Taiwanese officials are responding to recent statements by Donald Trump regarding Taiwan's semiconductor industry and defense contributions. Currently the Republican presidential candidate for the upcoming U.S. election on November 5, Trump suggested that Taiwan should pay compensation for its defense by the U.S. and criticized the island's role in the semiconductor sector.

Trump's remarks had a noticeable impact in the market; shares of Taiwan Semiconductor Manufacturing Co (TSMC), a global leader in chip production, fell by 4.3% on Monday, while shares traded in Taipei dropped over 2% on Tuesday.

Taiwanese Prime Minister Cho Jung-tai diplomatically responded to Trump's statements by emphasizing the democratic alliance between Taiwan and the U.S. Minister of Economic Affairs Kuo Jyh-huei echoed this sentiment, stating their respect for the opinions of "international friends" and noting that U.S.-Taiwan relations are developing steadily.

Larson's visit also reflects the continuity of U.S. support for Taiwan, a significant international ally and arms supplier, from the Trump administration to President Joe Biden's tenure. This support is crucial for Taiwan as it continues to reject Beijing's sovereignty claims over the island. Larson's discussions in Taiwan will cover a wide range of topics, including security, economic ties, and cultural connections, as both nations work to strengthen their informal but strategically important relations.