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. 

- Advertisement -

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. 

- Advertisement -

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. 

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

Industry's Buzz

Ford posts $19.5B charges, pivots EV strategy to hybrids and smaller vehicles

Ford To Book $19.5 Billion In Charges On EV Retreat

0
Recording major special charges tied to scaling back electric vehicle plans, Ford signals a sharp rethink of its EV strategy. Ford Motor announced it expects...
Foxconn

Foxconn Plays Down Impact Of Mexico Tariffs

0
Will Mexico’s new tariffs dent Foxconn’s plans? Hon Hai says exposure is limited, mitigation is ready, and expansion across Taiwan and Mexico remains on...
NLC India and PTC join hands for large scale green energy projects

NLC India And PTC Form JV For Green Energy Projects

0
Forming a joint venture to develop and operate renewable and emerging green technologies, NLC India and PTC expand clean energy plans NLC India Renewables Limited,...
ISRO plans seven launches including uncrewed Gaganyaan mission

ISRO Plans Seven Launches By March 2026

0
Lining up seven missions including an uncrewed Gaganyaan flight, ISRO targets an ambitious launch schedule by March 2026 India’s space agency ISRO has lined up...
The European Union office

EIB, STMicroelectronics Seal €1 Billion Funding Deal

0
Securing Europe’s chip future, the European Investment Bank has granted €1 billion to STMicroelectronics to support advanced manufacturing and R&D in France and Italy. The...

Learn From Leaders

Vaidya Bharadwaj, Project Leader, TEL India project

“We Aim To Upskill And Train Engineers To Help Us Innovate The Next Generation...

0
How can universities and industry team up to build engineers ready for real-world design, fab operations, and advanced manufacturing? Answering this question, Vaidya Bharadwaj...
Shivam Rajput, Founder of ElectraWireless

“Imagine Charging Your Electric Bike Or Cooking Dinner Without Ever Plugging In A Device”-...

0
What if one could charge your electric bike, power your kitchen, and drive your car all without ever plugging in a single wire? Shivam...
Anurag Dhoot, CEO, Epitome Components

“Each Board Undergoes 100% Electrical And Visual Testing”- Anurag Dhoot, Epitome Components

0
From appliances to defence radars, what makes an Indian PCB maker indispensable to industries nationwide? Epitome Components’ Anurag Dhoot reveals the inside story to...
Anmay Shahlot, Co-Founder, atovio

Clean Air in the Palm of Your Hand – Anmay Shahlot, atovio

0
Like a yearly apocalypse, air pollution hits Delhi NCR, choking skies and daily lives. Regular purifiers and masks fall short in combating this. But...
Dave Doherty, CEO, DigiKey

DigiKey’s India Bet: CEO Dave Doherty on Talent, Logistics, and the Long-Tail

0
DigiKey CEO Dave Doherty joined EFY’s journalist Dilin Anand in Bengaluru to unpack the company’s India strategy: why India is now a top-priority engineering...

Startups

NodexLabs No Code devices

“We Turn Factories Into Smart Data Hubs That Speak Back”

0
This startup has built IoT devices and AI solutions that enable small factories to monitor every machine and process, turning complex operations into clear,...
Startup

Parliament Gets Major Updates On Startup India Schemes

0
How is India funding its innovators? Government data shows, as of October 2025, billions have been channelled to a majority of women-led startups via...
Gaurav Achha, Co-Founder and Co-CEO at BonV Aero

“We Have Trained Over 100 Soldiers, And These Drones Operate At High-Altitude Locations In...

0
What if drones could deliver essential supplies to our army easily at the highest peaks, in extreme cold, and operate reliably where no vehicle...

From Lab To Fab: How AGNITIs Making Gallium Nitride Chips In India

0
The second wave of Covid-19 was an unlikely moment to launch a gallium nitride chip, yet AGNIT converted the challenge into momentum and built...
Products offered by Ionicks Industrial Infotech

“What Others Sell In Four Boxes, We Built In One”

0
Years of custom field work are shaping a product line with its own cloud, its own hardware, and a market that is now beginning...