As the global AI boom intensifies, U.S.-Taiwan economic and trade cooperation has entered a new phase. Roy Chun Lee, Senior Vice President of the Center for International Trade Policy at the Chung-Hua Institution for Economic Research (CIER), noted that the U.S. has actively pushed for supply chain restructuring and strategic autonomy in recent years. Driven by the global AI supercycle, Taiwan has become a vital tech and trade partner for the U.S. This is due to its free-market system, stable policy environment, and long-standing foundation of mutual trust. The economic complementarity between both sides continues to grow.
Senior Vice President Lee pointed out that foreign direct investment flows have always been a key indicator of a nation’s international competitiveness and geopolitical trustworthiness. In recent years, U.S. firms in sectors such as technology and retail have steadily expanded their presence in Taiwan. This trend not only shows that companies are optimistic about Taiwan’s growth potential. It also reflects deep international trust in the island’s broader economic environment and policy stability.
He further cited OECD research showing that multinational corporations prioritize policy stability and predictability when evaluating investment destinations. Cost considerations are secondary. Therefore, the continuous ramp-up of investments by U.S. firms signals a major vote of confidence from global corporations in Taiwan’s operating environment. This trend will also help elevate Taiwan’s critical standing in global supply chains.
Regarding AI adoption, Senior Vice President Lee stated that the penetration rate of AI in Taiwan’s retail and service sectors remains relatively low. If the transition relies solely on government resources, the pace of transformation will be limited. However, as multinational corporations introduce AI, smart logistics, and automation technologies to Taiwan, it will help drive industrial upgrades. Market competition will accelerate digital transformation. This shift will improve corporate operational efficiency and deliver a superior service experience for consumers, thus further strengthening Taiwan’s overall industrial competitiveness.
Author: CIER Editorial Team
Date: July 7, 2026