Taiwan and the United States have taken a new step to strengthen their economic and technological cooperation with a very specific goal: channel more investment into sectors considered strategic and trustworthy. The move centers around the so-called “five trustworthy industries” promoted by Taipei: semiconductors, artificial intelligence, military technology, security and surveillance, and next-generation communications. This roadmap had already been approved by the Taiwanese government as a national priority to reinforce its position in global value chains and present itself as a reliable technological partner for other democracies.
The shift is significant. For years, Taiwan has been primarily recognized for its strength in semiconductors, but now it aims to expand this leadership into a broader industrial bloc, where AI, technological security, and communications infrastructure also become central pieces. The logic is clear: in a context of geopolitical tensions, supply chain fragmentation, and stricter technology controls, it’s no longer enough to just manufacture chips; control over platforms, networks, surveillance systems, software, and industrial deployment capacity also matters.
The clearest sign of this new phase came with the agreement signed on January 30, 2026 between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO). The document includes commitments to favor American investments in Taiwan within critical sectors, including semiconductors, AI, defense technology, security and surveillance, next-generation communications, and biotechnology. Additionally, the U.S. commits to exploring financial support for investments in these sectors through institutions like the EXIM Bank and the U.S. International Development Finance Corporation (DFC), provided projects meet applicable requirements.
That same agreement also opens the door to an inverse movement: facilitating new Taiwanese investments in the U.S. in strategic technology manufacturing, including AI, semiconductors, and advanced electronics. It even envisions collaboration to establish one or more science and industrial parks in the United States, focusing on talent development and R&D, along with local support in land, infrastructure, and tax incentives.
Much more than an industrial policy
The Taiwanese initiative should not be read solely as an economic program. It is also a security architecture for technology. The “five trustworthy industries” plan seeks to leverage global geopolitical repositioning and secure a stronger role for Taiwan in critical supply chains. Regarding semiconductors, the official goal is to continue strengthening R&D in circuit design, advanced manufacturing processes, packaging, and materials and equipment development to cover more links in the chain. For artificial intelligence, the aim is to establish Taiwan as an industrial actor with its own capacity, while in next-generation communications, the country wants to influence standards and international decisions.
The core message is clear: Taiwan wants to be seen not just as an advanced manufacturing hub but as a comprehensive and trustworthy technological platform. This aligns with the broader strategy of President Lai Ching-te and the Executive Yuan led by Cho Jung-tai, who have reiterated that these five industries should create high-value jobs, boost national resilience, and strengthen partnerships with democratic allies.
Comparison Table: Taiwan’s Five Trustworthy Industries
| Sector | Strategic Objective | Key in U.S.-Taiwan Cooperation |
|---|---|---|
| Semiconductors | Strengthen design, advanced manufacturing, packaging, materials, and equipment | Increased cross-investment and promotion of strategic manufacturing |
| Artificial intelligence | Industrialize AI and extend it to more productive sectors | New investments and potential collaboration in R&D and talent |
| Military technology | Enhance critical defense-related capabilities | Integration within strategic sectors supported by the agreement |
| Security and surveillance | Reinforce reliable systems against geopolitical and cyber threats | Alignment in technological security and critical infrastructure control |
| Next-generation communications | Gain influence in future networks, connectivity, and standards | Shared interest in secure infrastructure and advanced connectivity |
Investment, supply chains, and political trust
Practically, the agreement between both sides of the Pacific not only aims to attract capital. It also seeks to redraw supply chains based on a “trust” political foundation. The agreement’s text includes commitments in areas such as digital trade, cybersecurity, infrastructure security, and investment review based on national security risks. This indicates that cooperation extends beyond commercial interests: it is deeply tied to the growing convergence between industrial policy and geopolitical strategy.
For Taiwan, the potential benefit is twofold. On one hand, it can attract more U.S. investment in high value-added areas and strengthen its local ecosystem. On the other hand, it gains leverage to have Taiwanese companies expand their industrial footprint in the U.S. in sectors where Washington seeks greater domestic or allied capacity. This complementarity is particularly relevant as economic security has become a central criterion for investment, manufacturing, and technology sharing decisions.
In short, Taiwan and the U.S. are not just talking business. They are building an industrial alliance with direct implications for semiconductors, AI, technological defense, and connectivity. This makes the five trustworthy industries more than a political slogan: they are among the most critical axes in the new technological architecture of the Asia-Pacific region.
Frequently Asked Questions
What are Taiwan’s five trustworthy industries?
They are the five strategic sectors that the Taiwanese government aims to promote as the foundation of its new industrial policy: semiconductors, artificial intelligence, military technology, security and surveillance, and next-generation communications.
What has Taiwan agreed on with the U.S. in these industries?
The agreement signed on January 30, 2026, includes facilitating U.S. investments in Taiwan in critical sectors, exploring financing through EXIM Bank and DFC, and also promoting new Taiwanese investments in the U.S. in strategic technology manufacturing.
Why are these sectors so important for Taiwan?
Because they combine economic growth, high-value employment, industrial resilience, and national security. Taiwan seeks to enhance its position in critical supply chains and become a reliable technological partner for other democracies.
Does this cooperation include more than semiconductors?
Yes. While chips remain the most visible core, the strategy also encompasses AI, technological defense, security and surveillance, critical infrastructure, and next-generation communications, along with potential science and industrial parks in the U.S.
via: Digitimes and Taiwan