On January 20, 2025, Donald Trump’s return to the White House ushered in a new phase of global political and economic uncertainty, marking the start of what is being referred to as the “Trump 2.0” era. Since Trump’s first presidency initiated the U.S.-China tech war, Taiwan’s semiconductor industry—at the center of global technological leadership—has been thrust into the geopolitical spotlight.
To assess the future trajectory of Taiwan-U.S. semiconductor cooperation, DSET launched a series of interviews with Washington-based geopolitical experts before and after the 2024 U.S. presidential election. The findings are compiled in DSET’s latest policy report, titled Walking a Tightrope: Navigating Taiwan-U.S. Semiconductor Security Under Trump 2.0, published this week to provide a comprehensive and timely analysis of the evolving tech geopolitics.
Key Policy Recommendations
The Economic Security Research Program at DSET published this report not only to anticipate the impact of Trump’s policies on Taiwan’s semiconductor industry and economic security over the next four years but also to help Taiwan’s government and businesses formulate effective strategies. The report outlines the following recommendations:
- Reforming Taiwan’s Decision-Making Framework for Economic Security
Taiwan’s bureaucratic system must be better equipped to handle geopolitical challenges in technology. DSET advocates for comprehensive reforms in Taiwan’s policy decision-making process and economic security framework, enhancing the adaptability and resilience of government institutions to respond to the rapidly shifting global tech landscape. - Maximizing National Interests Through Semiconductor Cooperation
Taiwan must strategically leverage its semiconductor industry to maximize national interests. As the U.S., Japan, and Europe seek to reduce reliance on Taiwan’s chip manufacturing and expand domestic production, Taiwan must carefully navigate these competing policy goals. The report urges Taiwan to proactively develop strategic cooperation plans with its allies to ensure that both Taiwan’s national interests and mutual benefits with partner countries are maintained. - Strengthening Taiwan’s Economic Security Amid Cross-Strait Tensions
Taiwan faces the dual challenge of economic security and complex cross-strait relations with China. Addressing these challenges requires overcoming internal political divisions, resolving conflicting economic interests, and strengthening Taiwan’s fragile regulatory framework for economic security. Additionally, Taiwan must collaborate with the U.S. and like-minded countries to protect its critical industries and technologies from state-backed Chinese competitors. The report calls for economic security regulatory reforms and actionable strategies to enhance Taiwan’s competitiveness while ensuring national security under internal and external pressures.
In-depth expert Interviews with Key Decision-Makers
As part of this research, DSET’s Economic Security Research Program conducted in-depth interviews with six influential figures in Taiwan and six experts in Washington who have played key roles in shaping Taiwan-U.S. semiconductor strategy in recent years.
In the U.S., DSET interviewed:
- Prof. Chris Miller – Author of Chip War and Associate Professor at Tufts University.
- Dr. Kevin Wolf – Former Assistant Secretary for Export Administration under the Obama administration, now a partner at Akin & Gump and a senior visiting fellow at CSET.
- Mr. Matthew Turpin – Former National Security Council Director for China during Trump’s first term, now a visiting fellow at Stanford’s Hoover Institution.
- Mr. Jimmy Goodrich – Former Vice President for Global Policy at the Semiconductor Industry Association (SIA), currently a senior advisor at RAND Corporation.
- Prof. Kim Mi-Yong – Former senior Export Control Officer at the U.S. Bureau of Industry and Security (BIS), with 30 years of experience in U.S.-Taiwan economic security cooperation.
- Dr. Kharis Templeman – Co-author of Silicon Triangle, Research Fellow at Stanford’s Hoover Institution.
On the Taiwan side, DSET conducted interviews with six former and current officials responsible for national security, economic security, export controls, and investment review policies. These interviews provided crucial insights into Taiwan’s internal decision-making processes and strategies for navigating semiconductor security under Trump 2.0.
Exclusive Full Transcripts of U.S. Interviews
With permission from the U.S. interviewees, DSET has included the full transcripts of the six U.S. interviews as an appendix to this report, offering direct insights from key policymakers and experts at the heart of Washington’s semiconductor and economic security strategies.
By engaging with these influential figures across different administrations and institutions, DSET aims to provide a clearer roadmap for Taiwan-U.S. cooperation on semiconductor and economic security in the Trump 2.0 era.