President Lai Ching-te called on European nations to secure double-taxation avoidance and investment protection agreements with Taiwan during the EU Investment Forum in Taipei on September 1. Highlighting a 650-percent surge in Taiwanese corporate investment in the European Union over the past decade, Lai emphasized the need to deepen semiconductor and technology supply chain resilience.
Economic ties between Taipei and Brussels have shifted over the past ten years. Bilateral trade reached nearly US$75 billion last year, anchoring the EU as Taiwan’s fifth-largest trading partner. As Taiwanese firms move past individual trade projects toward integrated, long-term industrial ecosystems, Lai urged European countries to promote agreements on double taxation and investment to help unlock greater investment and industrial cooperation.
Industrial Integration Replacing Simple Trade
Speaking in English at the forum, President Lai noted that Taiwanese investments in Europe are no longer isolated commercial bets. Instead, manufacturers are deploying capital with a broader time frame and a larger scale. A prime example is the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) announcement regarding a new technology park in Poland, which will streamline entry for domestic suppliers seeking European partners.
According to Economic Affairs Minister Kung Ming-hsin, corporate cooperation now extends into joint research, development, and advanced manufacturing. High-profile projects illustrate this structural pivot. Taiwan Semiconductor Manufacturing is establishing a 12-inch wafer fab in Dresden, Germany. Meanwhile, Hon Hai is collaborating with French firms on advanced packaging and testing, and GlobalWafers is investing in a high-end silicon wafer plant in Italy.
These initiatives align with European efforts to secure critical technological inputs. Lutz Güllner, head of the European Economic and Trade Office in Taiwan, pointed out at the forum that the ambition stretches far beyond simple buying and selling. The goal is to build interconnected ecosystems linking research, design, manufacturing, and applications.
Semiconductor Synergy and the Chips Act 2.0
The timing of Lai’s appeal coincides with the run-up to SEMICON Taiwan 2026, opening in Taipei on September 2. The exhibition brings together more than 1,300 global exhibitors and over 100,000 professionals from 65 countries. National pavilions from 18 nations underscore how “friendshoring” trends are reshaping microelectronics manufacturing.
Europe’s strategic ambitions are further defined by the European Commission’s draft Chips Act 2.0, introduced in June. This regulatory push aims to accelerate chip commercialization and enhance supply chain resilience. European R&D strength, equipment, and materials complement Taiwan’s prowess in manufacturing, advanced packaging, and design.
| Metric | Data Point | Context / Source |
|---|---|---|
| Bilateral Trade (last year) | Nearly US$75 billion | Makes the EU Taiwan’s fifth-largest trading partner (Taipei Times / CNA) |
| Investment Growth | Surged 650% over past decade | Compared to the preceding ten-year period (Invest EU Forum) |
| SEMICON Taiwan 2026 | 1,300+ exhibitors, 65 countries | Event opens September 2, featuring 18 national pavilions |
| Key Industrial Projects | TSMC Dresden, GlobalWafers Italy, Hon Hai France | Shift from trade to joint R&D and industrial ecosystems |
While industrial collaboration deepens on the ground, Lai believes that signing double taxation avoidance and investment protection pacts with the European Union will further unlock the potential of Taiwan-EU investment and industrial cooperation.
Navigating Global Regulatory Realities
Minister Kung Ming-hsin emphasized that the Ministry of Economic Affairs continues to operationalize these partnerships through institutionalized dialogue mechanisms with individual European nations, including France, Germany, and the Netherlands.
