The AI Inflection Point: How the US and Taiwan Respond to AI’s Economic Security Challenges

In January 2026, Taiwan signed a joint statement with the United States endorsing the Trump administration’s Pax Silica initiative on AI supply chain security. As the AI race continues, the economic security opportunities and challenges of AI will require a careful response from the U.S. and Taiwan, with each playing a vital role in the development of AI. From supply chain security for the advanced semiconductors that enable AI, to the development of policies and guardrails to guide the technology’s impact on people around the world, Taiwan and the United States are positioned to deepen cooperation across science and technology, trade, and education. But there are many geopolitical and economic challenges that will require careful coordination.