Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Taiwan says U.S. thanks it for help on auto chips amid shortage

Published 02/04/2021, 11:19 PM
Updated 02/05/2021, 04:10 AM
© Reuters. FILE PHOTO: A demonstrator holds flags of Taiwan and the United States in support of Taiwanese President Tsai Ing-wen during an stop-over after her visit to Latin America in Burlingame

TAIPEI (Reuters) - The United States thanked Taiwan on Friday for help on resolving an auto chip shortage that has snarled production, but there was no discussion on prioritising the making of these chips, Taiwan Economy Minister Wang Mei-hua said after a high-level meeting.

Car factories around the world are shutting assembly lines because of the chip shortages, which in some cases have been exacerbated by the former Trump administration's actions against Chinese chip companies.

Taiwan, home to tech firms such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chip maker, has become front and centre of efforts to resolve the shortage.

"The U.S. side thanked us for our help on this," Wang told reporters of the meeting, which she said was attended by senior executives from companies including TSMC and Qualcomm (NASDAQ:QCOM) Inc.

But she said the focus of the talks was not on auto chips and the issue of whether to prioritise their production was not brought up.

Wang said TSMC also discussed its planned new $12 billion plant in the U.S. state of Arizona, although she did not give details.

TSMC declined to comment on the meeting.

The auto chip shortage has affected Volkswagen AG (OTC:VWAGY), Ford Motor (NYSE:F) Co, Subaru (OTC:FUJHY) Corp, Toyota Motor (NYSE:TM) Corp, Nissan (OTC:NSANY) Motor Co Ltd, Fiat Chrysler and other car makers.

The closed-door event, joined by the Taiwan minister and what she described as "very senior U.S. officials", is the first announced high-level exchange between Taiwan and the Biden administration, which took office on Jan. 20.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The State Department said last week that Deputy Assistant Secretary for Trade Policy and Negotiations Matt Murray would take part.

The de facto U.S. ambassador to Taiwan, Brent Christensen, did attend, and was seen getting into his car after the meeting was over.

Despite a lack of formal diplomatic ties, the United States is Chinese-claimed Taiwan's most important international backer and arms supplier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.