Taiwan, US Deepen Cooperation on AI, Tech and Drones

Senior officials from Taiwan and the United States held high-level talks on cooperation in artificial intelligence, advanced technology, and drone development, underscoring the growing strategic and economic ties between the two sides.

Senior officials from Taiwan and the United States held high-level talks on cooperation in artificial intelligence, advanced technology, and drone development, underscoring the growing strategic and economic ties between the two sides. The discussions took place under the U.S.-Taiwan Economic Prosperity Partnership Dialogue, a forum launched during the first Trump administration.

Although Washington and Taipei do not maintain formal diplomatic relations, the United States remains Taiwan’s most important international supporter and its primary arms supplier.

High-Level Talks in Washington

The sixth round of the dialogue was led by U.S. Under Secretary for Economic Affairs Jacob Helberg and Taiwan’s Economy Minister Kung Ming-hsin, who is currently visiting the United States. The U.S. State Department described Taiwan as a “vital partner” in key economic and technological initiatives.

Officials highlighted Taiwan’s advanced manufacturing base, particularly its semiconductor industry, as central to the global expansion of artificial intelligence technologies.

AI, Semiconductors and Economic Security

During the talks, both sides signed statements supporting the Pax Silica Declaration, a U.S.-led initiative aimed at securing artificial intelligence and semiconductor supply chains. They also agreed on broader cooperation in economic security, reflecting shared concerns over supply chain resilience and geopolitical risk.

Discussions covered certification of drone components, cooperation on critical minerals, and the intersection of supply chain security and emerging technologies such as AI.

Trade, Investment and Supply Chains

The dialogue also addressed ways to counter economic coercion, expand joint projects in third countries, and remove tax-related barriers to boost bilateral investment. Taiwan has long pushed for a double taxation avoidance agreement, arguing it would significantly increase U.S.-Taiwan investment flows.

Earlier this month, the two sides reached an agreement to reduce tariffs on Taiwanese exports to the United States and encourage greater Taiwanese investment, particularly in semiconductors and high-tech manufacturing.

China’s Objections

China has repeatedly criticised U.S.-Taiwan engagement, viewing Taiwan as a core sovereignty issue and opposing any official interaction between Taipei and Washington. Beijing describes Taiwan as an internal matter and a red line in U.S.-China relations.

Taiwan’s government rejects these claims, maintaining that the island’s future can only be decided by its people.

Analysis

The latest dialogue highlights how U.S.-Taiwan relations are increasingly anchored in technology and economic security rather than symbolism. Cooperation on AI, semiconductors, and drones reflects Washington’s broader strategy to strengthen trusted supply chains while reducing reliance on China.

For Taipei, deeper economic and technological integration with the United States enhances its strategic relevance and resilience. For Washington, Taiwan’s manufacturing capabilities make it an indispensable partner in the global AI race despite the diplomatic and geopolitical risks such cooperation continues to carry.

With information from Reuters.

Sana Khan
Sana Khan
Sana Khan is the News Editor at Modern Diplomacy. She is a political analyst and researcher focusing on global security, foreign policy, and power politics, driven by a passion for evidence-based analysis. Her work explores how strategic and technological shifts shape the international order.