US thanks Taiwan for helping solve car chip shortage at key trade meeting

The United States thanked Taiwan on Friday for help resolving a shortage of car chips that has eroded production, but there has been no discussion about prioritizing the production of these chips, Taiwan’s economy minister Wang Mei-hua said after a meeting at high level.

Machine factories around the world are closing assembly lines due to a lack of chips, which in some cases have been exacerbated by the former US administration’s actions against Chinese chips.

Taiwan, which hosts technology companies such as Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest manufacturer of contract chips, has become the focus of efforts to address the deficit.

“The US side thanked us for help in this regard,” Wang told reporters at the meeting, which he said was attended by executives from companies including TSMC and Qualcomm.

However, she said the talks did not focus on car chips and there was no question of whether their production should be given priority.

Wang said TSMC also discussed its planned $ 12 billion new plant in the US state of Arizona, although he did not give details.

TSMC did not immediately respond to a request for comment at the meeting.

The shortage of car chips affected Volkswagen, Ford Motor, Subaru, Toyota Motor, Nissan Motor, Fiat Chrysler and other car manufacturers.

The closed-door event, which was joined by the Taiwanese minister and what she described as “very senior US officials”, is the first high-level exchange announced between Taiwan and the Biden administration, which took office on January 20th.

The State Department said last week that it would be assisted by Deputy Secretary for Trade Policy and Negotiation Matt Murray.

The de facto US ambassador to Taiwan, Brent Christensen, attended and was seen getting into his car after the meeting.

Despite the lack of formal diplomatic ties, the United States is Taiwan’s largest international supporter and arms supplier.