Taiwan Emerges as Key U.S. AI Partner Amid Rising Concerns Over China

Taipei/Washington, March 29, 2026 – Taiwan’s Vice President Hsiao Bi-khim has highlighted the island’s critical role in advancing artificial intelligence (AI) as a strategic partner of the United States. Speaking via video at the Hill and Valley Forum in Washington on March 24, Hsiao described Taiwan and the U.S. as “indispensable, complementary partners,” emphasizing shared democratic values and aligned technology strategies.

Hsiao detailed 10 new AI infrastructure projects launched by Taiwan, including AI robotics, smart applications, quantum computing, and silicon photonics, designed to extend AI beyond data centers into deployable systems. These initiatives are expected to generate over $500 billion in economic value by 2040 and create 500,000 jobs in the AI sector.
The Vice President also referenced a recent U.S.–Taiwan chips deal, under which Taiwanese tech companies will invest at least $250 billion in U.S.-based semiconductor and AI innovation, supported by a matching $250 billion credit guarantee from Taiwan’s government. “Taiwan contributes to every layer of the U.S. AI hardware stack. We are more than just essential. We are a trustworthy partner,” Hsiao said.
Hsiao further welcomed Taiwan’s participation in Pax Silica, a U.S.-led initiative to build secure supply chains for advanced technology, including AI and semiconductors.
At the forum, U.S. Senators Jim Banks and Rick Scott warned that the AI race is high-stakes and extends beyond technology into moral and strategic dimensions. Banks praised the 2025 U.S. AI action plan, which includes tighter export controls on AI technology, and highlighted his GAIN AI Act, requiring U.S. companies to prioritize domestic access before exporting advanced AI chips to countries of concern, including China. Scott discussed his No Adversarial AI Act, introduced last year in both chambers of Congress.
Together, Taiwan and the U.S. aim to maintain technological leadership, secure supply chains, and ensure AI development aligns with democratic values, the forum concluded.