Taiwan Cites Semiconductor Industry in Arms Sale Talks With U.S.

Taiwan is expected to reference its semiconductor manufacturing capacity during discussions with the United States over a paused weapons transfer. The Trump administration halted the latest arms package last fall. A call between President Trump and Taiwanese President William Lai has not yet been scheduled.

The United States has provided weapons to Taiwan for decades. The most recent transfer was paused last fall during a period of strained relations with China. Chinese President Xi Jinping raised the issue during a state visit with President Trump earlier this month, after which Trump said he would decide following a conversation with Lai.

Two former senior Trump administration officials told the Washington Examiner that Taiwan will likely highlight its semiconductor industry, including Taiwan Semiconductor Manufacturing Company, in those talks. John Ullyot, former National Security Council spokesman, described the industry as Taiwan's "very own Trump card" and noted its importance for global technology supply.

A second former White House official said Taiwan's semiconductor position is viewed internally as its primary bargaining point. The official added that Taiwan's foreign policy approach centers on this leverage.

TSMC announced a $100 billion expansion of its Arizona operations in early 2025. C. Wei in the Oval Office on March 3, 2025, and stated the projects would create thousands of jobs. In January 2026, TSMC CFO Wendell Huang said the company does not plan to produce its most advanced chips in the United States.

White House officials declined to comment on the upcoming arms decision. Ullyot said only President Trump will determine whether the sale proceeds.