TAIPEI, Taiwan: Taiwan has vowed to address U.S. concerns over the semiconductor industry while increasing investment and trade with the United States, President Lai Ching-te said, following comments from President Donald Trump criticizing Taiwan's role in global chip manufacturing.

Trump reiterated his goal of bringing semiconductor production back to the U.S. and suggested Taiwan had taken away an industry that should be rebuilt domestically. In response, Lai emphasized Taiwan's commitment to maintaining strong economic and security ties with the U.S.

"We, of course, are aware of President Trump's concerns," Lai said after a National Security Council meeting. "Taiwan's government will communicate and discuss with the semiconductor industry and come up with good strategies. Then we will come up with good proposals and engage in further discussions with the United States."

Lai also proposed that democratic nations, including the U.S., collaborate to create a global alliance for AI chips and an advanced semiconductor supply chain built on shared values. "While admittedly we have the advantage in semiconductors, we also see it as Taiwan's responsibility to contribute to the prosperity of the international community," he said.

Taiwan is home to TSMC, the world's largest contract chipmaker, which supplies major firms like Apple and Nvidia. The company is already investing US$65 billion in chip manufacturing plants in Arizona, a project that began in 2020 under Trump's previous administration.

A senior Taiwanese security official, speaking anonymously, said that if TSMC found it feasible to expand its U.S. operations, Taiwan's government would assist in negotiations. "Communications between Taiwan and U.S. economic, security, and defense officials are quite good, and strong support from the United States can be felt," the official added.

The U.S. is Taiwan's most significant international ally and arms supplier despite not having formal diplomatic relations. Trump recently welcomed a joint U.S.-Japan statement calling for stability in the Taiwan Strait and supporting Taiwan's participation in international organizations.

However, Taiwan's large trade surplus with the U.S., which surged 83 percent last year to a record $111.4 billion, has drawn scrutiny. Lai highlighted that the U.S. remains Taiwan's top foreign investment destination and one of America's most reliable trading partners.

Trump has previously criticized Taiwan and other U.S. allies for not spending enough on defense. Addressing this concern, Lai reaffirmed Taiwan's commitment to national security, saying, "Taiwan must demonstrate our determination to defend ourselves." He added that his administration is working on a special budget to increase defense spending from 2.5 percent to three percent of GDP.

Lai's government is currently locked in a budget dispute with the opposition-controlled parliament, which has sought to make cuts, including to defense allocations. "Certainly, more and more friends and allies have expressed concern to us, worried whether Taiwan's determination for its self-defense has weakened," Lai noted.

As Taiwan navigates economic and security challenges, its leaders are emphasizing strategic cooperation with the U.S. while balancing pressure from both Washington and Beijing.