Dr. Chih-cheng Chang, CEO of DSET, led a delegation to Washington D.C. on April 4 to meet with former U.S. Trade Representative (USTR) Katherine Tai. During the meeting, DSET shared its latest report on mature node semiconductor manufacturing and discussed how Taiwan and the United States can address threats posed by China’s expansion in this critical sector.
Katherine Tai served as the U.S. Trade Representative in the Biden administration, where she oversaw U.S.-China trade agreements, the United States-Mexico-Canada Agreement (USMCA), and the U.S.-Taiwan Initiative on 21st-Century Trade. Before leaving office, Tai initiated a Section 301 investigation into Chinese subsidies for mature node semiconductors. This investigation continues under the Trump administration, which is expected to take further action against China’s mature node semiconductor industry upon completion of the review.
During the meeting, DSET shared its recently completed report titled “The Great Siege: The PRC’s Comprehensive Strategy to Dominate Foundational Chips.” The report draws on first-hand interviews with Taiwanese mature node semiconductor manufacturers and publicly available market information to document China’s threats to Taiwan’s industry and offer policy recommendations for allied nations.
In the discussion, former Representative Tai analyzed the differences in thinking between the Biden and Trump administrations. She noted that compared to the Biden administration’s emphasis on international cooperation, the Trump administration places greater priority on “America First” policies and reshoring manufacturing, with the goal of transforming the U.S. from a consumption-based economy to a production-based one. Tai suggested that finding opportunities for cooperation requires understanding the “Revive American Manufacturing” policy logic of the Trump administration.
Regarding mature node semiconductors, Tai emphasized that democratic countries should consider how to help Global South nations build manufacturing capabilities beyond the United States. This approach would create a more resilient and diversified global chip supply chain, weakening China’s dominant position while reducing geopolitical risks associated with overdependence on China.
DSET responded that the current semiconductor manufacturing supply chain structure is highly concentrated, and Global South countries still face various infrastructure constraints. Drawing from Taiwan’s “chip diplomacy” experience, DSET suggested initially focusing on more flexible segments such as IC design or assembly to gradually cultivate local talent and technical capabilities before integrating these regions into the global semiconductor supply chain. Former Representative Tai expressed agreement, viewing this as a worthwhile long-term strategic approach.
Beyond semiconductor supply chains, the meeting covered several other important topics. Tai recommended that Taiwan consider cooperating with other countries when engaging with the Trump administration, exchanging intelligence and coordinating strategies rather than acting alone. She also advised that Taiwan maintain negotiating flexibility on high tariffs and other trade issues. Both parties exchanged views on data monopolization problems in the digital era, including data security and geopolitical risks arising from the continued cross-border flow of data to China.
Katherine Tai served as the head of the Office of the U.S. Trade Representative from March 2021 to January 2025. Previously, she was Chief Counsel for China Trade Enforcement at USTR and served as Chief Trade Counsel for the U.S. House Ways and Means Committee for seven years, participating in numerous important trade agreement negotiations. During her tenure, she worked with Robert Lighthizer, Trade Representative in the first Trump administration, to promote the signing of the USMCA. Tai also launched the U.S.-Taiwan Initiative on 21st-Century Trade, emphasizing Taiwan’s critical position in global supply chains and the semiconductor industry.