Post by : Raman

Photo: Reuters

Taiwan is showing the world how technology can help a small country gain global influence. In September 2025, Taiwan hosted the Semicon trade show in Taipei, a major event that brought together technology companies, governments, and industry leaders from around the world. The trade show focused on semiconductors and artificial intelligence (AI), two areas where Taiwan is a global leader.

Taiwan’s Leadership in Semiconductors

Taiwan is known for producing the chips that power many of the world’s electronic devices. The Taiwan Semiconductor Manufacturing Company, or TSMC, is the largest contract chipmaker globally. It supplies chips to companies like Apple, Nvidia, and AMD. These semiconductors are essential for smartphones, computers, AI servers, and many other technologies. Taiwan’s expertise in chips gives it a powerful role in global trade and technology.

By hosting Semicon, Taiwan is using what experts call “chip diplomacy.” This means it leverages its technology to build political and economic connections with other countries. Officials at the trade show said semiconductors are more than products—they are strategic tools that can strengthen global relationships.

Building International Partnerships

Taiwan’s chip diplomacy focuses on countries that want alternatives to Chinese technology. Central and Eastern Europe is a key region. For example, the Czech Republic is partnering with Taiwan to support TSMC’s first European semiconductor factory in Germany. These partnerships help countries secure advanced technology while promoting shared values like democracy.

Other countries also participated in the event, including Costa Rica and African nations. These countries are exploring how to work with Taiwan on technology and innovation. Such collaborations show that Taiwan is expanding its influence beyond traditional allies and creating practical, technology-driven partnerships worldwide.

The Role of Artificial Intelligence

AI was another major topic at Semicon. Modern AI systems require specialized chips to run efficiently. Taiwan, through companies like TSMC, produces the hardware necessary for AI servers, cloud computing, and data processing. Countries attending the trade show are interested in using Taiwan’s technology for AI in healthcare, transportation, and cybersecurity. By supplying AI chips, Taiwan ensures that countries have access to secure, high-quality technology.

Economic and Diplomatic Benefits

Taiwan’s approach provides both economic and diplomatic advantages. Hosting major events like Semicon strengthens informal alliances with countries around the world. Even though formal diplomatic recognition is limited due to China’s claims, Taiwan is building functional relationships with countries and companies globally. These partnerships help Taiwan influence global supply chains, promote secure technology practices, and maintain its position as a leader in AI and semiconductor innovation.

Challenges and Risks

Despite its successes, Taiwan faces several challenges. China continues to pressure countries not to recognize Taiwan formally. Taiwan also depends heavily on its semiconductor industry, so any disruption could affect the global market. Rapid advances in AI and chips create opportunities but also risks, as countries must trust Taiwan’s technology and supply chains. Additionally, Taiwan must carefully balance its global engagement to avoid escalating tensions with China.

Global Implications

Taiwan’s chip diplomacy is reshaping global technology and trade. Semiconductors are critical for modern economies, giving Taiwan leverage in international negotiations. Countries that partner with Taiwan gain access to reliable technology for AI, cloud computing, and electronics. Semicon also demonstrates that technology can act as a bridge for diplomacy. Even without formal recognition, Taiwan can foster cooperation, secure trade, and influence global innovation.

Taiwan plans to expand its semiconductor partnerships and promote AI technology worldwide. Future trade shows will likely focus on supply chain security, transparency, and innovation. By highlighting its technology, Taiwan positions itself as a crucial partner for countries seeking to reduce reliance on China.

Taiwan’s chip diplomacy at the 2025 Semicon trade show shows how a small country can use technology for global influence. Semiconductors and AI are not only economic assets but also tools for diplomacy. Taiwan is proving that innovation and international collaboration can go hand in hand, creating strong partnerships and a stable role in the global technology landscape.

Through strategic planning and technological leadership, Taiwan continues to strengthen its economy, its global influence, and its position as a world leader in semiconductors and AI.

Taiwan, Semiconductors, Chip Diplomacy, Artificial Intelligence, Global Partnerships, TSMC