Taiwan Eyes US Arms Deals After Trump’s Semiconductor Remarks

After Trump’s comments on Taiwan taking away semiconductor business from US, Taiwan may soon lock in major arms deals to address his “protection” money demand, reports say.

Taiwan may soon respond to Donald Trump’s “protection” money demand by securing major arms deals, focusing on self-defence according to an Economic Times report. This comes after Trump’s recent comments, where he suggested Taiwan should pay the U.S. for its defence and claimed it had taken semiconductor business away from the U.S.

The US-Taiwan Business Council, which helps facilitate defence exchanges between Washington and Taipei, testified that Taiwan could soon engage in a substantial arms deal with the U.S., potentially in early 2025. 

Although the U.S. is already Taiwan’s primary arms supplier, there has been a complain about a $20 billion backlog of orders. Last month, Taiwan announced nearly $2 billion in missile system orders. 

Taiwan, which rejects China’s claim over its sovereignty, has faced increasing military pressure from Beijing, including recent military drills. Taiwan’s foreign ministry warned China might escalate tensions during the U.S. presidential transition with more military exercises, cyberattacks, or psychological warfare. 

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According to ET, a former U.S. official predicted that Taiwan would act quickly to secure a significant arms package with the U.S. to align with the Trump administration and counter any negative perceptions Trump may have about Taiwan’s role in the semiconductor industry.

Taiwan’s defence relationship with the U.S. has been complicated since the termination of their formal defence pact in 1979 when diplomatic relations were also severed. As a result, Taiwan does not pay directly for U.S. forces on its soil, unlike Japan and South Korea.

However, last week, Taiwan’s Foreign Minister Lin Chia-lung declined to comment on “protection money” but confirmed that Taiwan’s defence budget, currently 2.5% of GDP, would keep growing. The defence ministry also reaffirmed Taiwan’s commitment to self-defence and maintaining stability in the Taiwan Strait.

Subsequently, several potential appointees in the new U.S. administration, including strong Taiwan supporters like former Secretary of State Mike Pompeo and ex-National Security Adviser Robert O’Brien, could reportedly influence U.S.-Taiwan relations. 

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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