Tsai touts 'democracy chips' in meeting with US state governor

TAIPEI • Taiwan wants to ensure its partners have reliable supplies of semiconductors, or "democracy chips", President Tsai Ing-wen told the governor of the US state of Indiana yesterday, saying China's threats mean fellow democracies have to cooperate.

Governor Eric Holcomb, a Republican, is making the third trip to Taiwan this month by a US delegation after US House Speaker Nancy Pelosi visited briefly, infuriating China which views Taiwan as its own territory and would lash out at any diplomatic action that might lend the island legitimacy.

After Mrs Pelosi's visit, China staged extensive military exercises near Taiwan. A week after the Democrat's trip, five US lawmakers, led by Senator Ed Markey, visited Taiwan.

"Taiwan has been confronted by military threats from China, in and around the Taiwan Strait," Ms Tsai told Mr Holcomb during a meeting yesterday at her office in Taipei.

"At this moment, democratic allies must stand together and boost cooperation across all areas," she added, in remarks carried live on her social media pages.

Taiwan's defence ministry said four Chinese aircraft yesterday crossed the median line of the Taiwan Strait, which normally serves as an unofficial barrier, as China continues its military activities near the island.

Mr Holcomb was due to meet representatives of Taiwan's semiconductor companies on his visit amid an expansion of links between his state and the island, which is home to the world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co.

"Economic security is an important pillar of national and regional security," Ms Tsai said. "Taiwan is willing and able to strengthen cooperation with democratic partners in building sustainable supply chains for democracy chips."

Mr Holcomb talked of the efforts his state was making in supporting the tech industry, pointing to a June announcement by Taiwan's MediaTek, the world's fourth largest chip designer by revenue, of a new design centre in Indiana in partnership with Purdue University.

Speaking to reporters, Mr Holcomb said Taiwan offered some of the best high-technology talent in the world.

"We're facing and specifically seeking to turn supply chain pains into supply chain gains. I think the way we get there faster, in a more resilient fashion, is by doing it together," he said.

Mr Holcomb oversaw the signing of a cooperation agreement between Purdue and Taiwanese electronics contract manufacturer Wistron Corp, with company chairman Simon Lin mentioning opportunities to collaborate on areas like cyber security and smart factories.

Meanwhile, a cross-party delegation from Japan arrived in Taiwan yesterday for a two-day trip that will see them meet President Tsai.

"China's military provocations and other erratic behaviour pose a risk to the peace and safety of not only Taiwan, but East Asia as a whole," the head of the Japan-Taiwan parliamentary friendship association Keiji Furuya, a member of the ruling Liberal Democratic Party, said on Twitter before departing Tokyo.

REUTERS, BLOOMBERG