Semiconductors in EU–Taiwan Relations: Bridging Gaps, Building Trust

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Author

Resident Senior Fellow and Director of International Studies

Dr. Mathieu Duchâtel is a Resident Senior Fellow for Asia at Institut Montaigne, and Director of International Studies.

This policy paper was published as part of the Chips Diplomacy Support Initiative (CHIPDIPLO), an 18-month project designed to contribute to the shaping of a European foreign policy on semiconductors. The project is coordinated by Institut Montaigne with the Central European Institute of Asian Studies (CEIAS, Bratislava), the Centre for Security, Diplomacy and Strategy (CSDS, Brussels), and the EU Institute for Security Studies (EUISS, Paris and Brussels), and co-funded by the European Union.

Semiconductors are increasingly at the core of EU–Taiwan relations. As Taiwan consolidates its position as the indispensable manufacturing hub of the global AI infrastructure revolution, its semiconductor ecosystem is rapidly internationalizing in ways that also benefit Europe. Taiwanese engagement in Europe is growing through major investments such as TSMC’s Dresden fab and the expanding presence of firms like Foxconn and GlobalWafers. At the same time, European companies, including ASML, Air Liquide, and Merck, are deeply embedded in Taiwan’s production networks, reflecting an increasingly interdependent relationship shaped by supply chain resilience and economic security.

Yet this cooperation remains uneven, constrained by regulatory hurdles, talent shortages, differing strategic priorities on both sides, different economic models and misperceptions. Based on extensive interviews with European and Taiwanese stakeholders, this paper argues that a new phase of cooperation is both possible and necessary. It sets out a pragmatic agenda for Europe: improving the business environment in key industrial hubs, scaling up research cooperation, strengthening investment frameworks, enhancing talent mobility, and providing clearer signals on demand and the long-term consistency of its de-risking strategy.

Funded by the European Union. Views and opinions expressed are however those of the author only and do not necessarily reflect those of the European Union or the Directorate-General for Communications Networks, Content and Technology (DG Connect). Neither the European Union nor the granting authority can be held responsible for them.

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Headlines

September 2025

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