TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) warned Friday that China’s chip dumping could stifle global innovation and urged action to counter the threat.

Speaking at the Global Semiconductor Supply Chain Forum in Taipei, Lai said China’s tactics – already seen in steel and EVs – are now targeting chips, backed by heavy state subsidies, per a press release. Without a coordinated response, the damage to fair competition and innovation could deepen, per CNA.

Lai noted Taiwan’s pivotal role in the global chip supply chain, leading in wafer fabrication and advanced packaging, but said that no single country can sustain the industry alone. The US, Japan, and the Netherlands contribute vital materials and equipment, making international collaboration essential.

He cautioned that weak links in raw material development could bring the entire supply chain to a halt. Only a united global ecosystem, he said, can ensure resilience and future prosperity in the AI-driven era.

Despite Taiwan’s dominance in advanced processes, Lai cautioned that China’s growing capacity in mature nodes could distort markets through underpriced exports. Dumping semiconductors, he argued, threatens not just pricing but long-term technological progress.

To bolster Taiwan’s competitiveness, Lai pledged government support through financial incentives and public-private collaboration. He said the government is building partnerships with TSMC, Foxconn, and Nvidia.

Lai said Taiwan’s chip sector is a national strength with global responsibility – one that must be protected through cooperation, innovation, and vigilance against unfair trade practices.