The United States is advancing the Pax Silica initiative by bringing together partner economies to strengthen the security of AI, semiconductor, and critical infrastructure supply chains. Ming-Min Yang, Assistant Deputy Executive Director of the Center for International Trade Policy at the Chung-Hua Institution for Economic Research (CIER), said Taiwan’s strengths in advanced semiconductor manufacturing, AI servers, and supply chain development position it to deepen cooperation with the United States and other partners in talent development, manufacturing technologies, and supply chain de-risking. Taiwan is also an integral part of a comprehensive AI supply chain framework.
The U.S. Department of State launched Pax Silica in late 2025 and convened its second summit in June 2026. The initiative currently includes 24 signatories, with collaborative efforts spanning critical minerals, energy, advanced manufacturing, semiconductors, AI infrastructure, and logistics. Taiwan participates in the framework and its summits as a non-signatory, engaging through the U.S.-Taiwan Economic Prosperity Partnership Dialogue (EPPD). Additionally, Taiwan has formally endorsed the principles of the Pax Silica Declaration via a joint statement with the United States.
Talent Development Is a Key Priority for Supply Chain Cooperation
At a Global Taiwan Institute (GTI) forum in Washington on September 28, 2026, Yang stated that Pax Silica offers an opportunity for Taiwan and the United States to enhance cooperation in trade and economic security. Beyond its advanced semiconductor and manufacturing capabilities, Taiwan has developed substantial expertise in AI hardware and supply chain risk mitigation. This expertise can be further leveraged in talent development, manufacturing technologies, and supply chain management. The CIER also noted that the forum emphasized opportunities for Taiwan-U.S. collaboration in critical research and development, supply chain security, talent development, and infrastructure.
Taiwan faces a declining birthrate and labor shortages across multiple industries. While developing talent in advanced technologies remains essential, no single country can meet all its workforce needs independently. Deeper talent exchanges, training programs, and specialization with the United States and other partners will therefore be essential to sustaining the growth of Taiwan’s AI industry.
AI Infrastructure Is the Next Area Requiring Greater Investment
If AI servers and data centers are considered part of AI infrastructure, Taiwan already plays a significant industrial role, particularly through its comprehensive server manufacturing supply chain. However, data center construction and operation require more than server equipment. They also depend on power, energy, and other supporting infrastructure. Taiwan must continue strengthening these capabilities if its industries are to expand further into AI infrastructure.
Yang observed that AI supply chain competition now extends beyond chips and models, encompassing a broader ecosystem that includes talent, energy, data centers, manufacturing, and critical components. Taiwan can leverage its established strengths in semiconductor and ICT manufacturing, utilizing international cooperation frameworks such as Pax Silica to expand its industrial capabilities into AI infrastructure and supply chain security. International specialization may also alleviate talent and infrastructure constraints faced by individual countries.
Taiwan should continue building on its advanced manufacturing strengths while expanding cooperation from chip manufacturing to AI systems and infrastructure. It should also strengthen its capabilities in talent development, critical R&D, energy, and data centers. These efforts would expand Taiwan’s role and opportunities for cooperation as global AI supply chains undergo restructuring.
Source: Economic Daily News (October 1, 2026). Taiwanese Scholar: Pax Silica Aims to Build a Comprehensive AI Supply Chain, but It Would Be Incomplete Without Taiwan. Economic Daily News. https://money.udn.com/money/story/5612/9787323