Taiwan considers high-tech strategic partnership with US

TAIPEI, Oct 02 (Reuters): Taiwan is considering forming a high-tech strategic partnership with the US, which wants increased Taiwanese investment, the island's top tariff negotiator said on Thursday, giving an update on talks with Washington.

Taiwan, home to the world's biggest contract chipmaker TSMC, runs a large trade surplus with the United States. The island's exports to the US are currently subject to a 20 per cent tariff, a figure Taipei's government is seeking to cut.

Taiwan Vice Premier Cheng Li-chiun, who is leading the tariff talks with Washington, told reporters in Taipei she was hopeful both sides could reach a consensus on expanding investment in the United States through a "Taiwan model".

This would not involve relocating supply chains but rather extending and expanding US production capacity, said Cheng, who returned this week from the latest round of talks.

The government views the model for investing in the country as "industrial investment planning" coupled with government support measures such as export credit guarantees and joint Taiwan-US development of industrial clusters, she added.

"The current negotiation focus is that the United States expects us to expand investments and engage in supply chain cooperation."