Placing technology at the core of Europe-Taiwan relations is not just a strategic move; it’s a necessity. Taiwan sits at the heart of global semiconductor supply chains, and as the world leans more into artificial intelligence, its significance will only grow. European nations are keenly aware of Taiwan’s burgeoning role in U.S. supply chains, particularly in defense sectors. The collaboration between Nvidia and Taiwanese suppliers is a glaring example of this synergy, showcasing how intertwined these economies have become.
For Europe, the stakes are high. With Xi Jinping’s grip on power showing no signs of loosening, the continent must rethink its dependencies. Reducing reliance on China isn’t just about economics; it’s about shielding Europe from authoritarian influences and nurturing partnerships with like-minded democracies. Some skeptics argue that the risk of conflict in the Taiwan Strait is too great to justify deeper ties. But let’s face it: disengagement carries its own risks. As the geopolitical landscape shifts, European prosperity is increasingly tied to Taiwan’s fate. Why not seize the opportunities that lie ahead instead of being paralyzed by fear of Chinese influence?
The private sector is already catching on. Jonathan Chang from Vanguard International Semiconductor Corporation highlighted at the DSET conference in Taipei that geopolitical risks and supply chain challenges are opening fresh business avenues. Major players like Apple and HP are pushing Taiwanese firms to diversify investments, branching out from China to places like India and Southeast Asia. This isn’t typical EU behavior, which usually leans towards a defensive posture, but the winds of change are blowing.
Take TSMC’s move to establish a semiconductor fab in Dresden, buoyed by a €5 billion German state aid package. If all goes according to plan, TSMC could expand its European footprint, potentially bringing along its suppliers to the Czech Republic. Meanwhile, ProLogium is making waves in Dunkirk, scaling up its semi-solid-state battery prototype with a hefty €1.5 billion subsidy from the French government. If they crack the mass production nut, they could help build a new electric battery ecosystem in northern France, a critical step toward achieving Europe’s net-zero goals.
Taiwan’s strategic priorities under President Lai Ching-te are also aligning nicely with Europe’s focus on economic security. The emphasis on semiconductors, AI, military tech, security, and next-gen communications resonates with Europe’s current trajectory. Recent collaborations, like the one between Taiwan’s GEOSAT Aerospace and France’s Cavok UAS for long-endurance UAVs, illustrate this growing synergy. Taiwan’s choice of a European satellite provider over Elon Musk’s Starlink speaks volumes about their desire for reliable partnerships.
Despite these promising developments, the road ahead is fraught with challenges. The EU-Taiwan economic relationship is solid, with bilateral trade reaching €73.8 billion in 2023. Yet, the potential for Taiwanese investment in Europe remains largely untapped. The EU-Taiwan Trade and Investment Dialogue, initiated in 2022, has made strides in facilitating cooperation, but political obstacles continue to loom large. The EU’s reluctance to engage in a Bilateral Investment Agreement (BIA) due to political concerns could stifle further progress.
Here’s where a Trade and Technology Council (TTC) could come into play. The EU-India TTC serves as an interesting model, focusing on boosting bilateral trade and investment rather than merely coordinating policies against external threats. An EU-Taiwan TTC could provide a platform to tackle strategic sectors and navigate ongoing disputes, like the one at the WTO regarding offshore wind local content rules. This could also enable better coordination among various EU agencies, creating a unified front to tackle issues like talent shortages in the semiconductor sector.
The EU-Taiwan Trade and Investment Dialogue has already proven effective in addressing pressing issues. As Europe grapples with a potential shortfall of 350,000 employees in its semiconductor industry by 2030, a dedicated platform could help streamline efforts to attract talent and bolster supply chain resilience. The EU-Taiwan tech alliance isn’t just a nice-to-have; it’s a crucial step toward enhancing the EU’s economic security in an increasingly complex geopolitical landscape. The future of Europe-Taiwan relations hinges on recognizing these opportunities and acting decisively to forge a stronger partnership.