U.S. and Taiwan Sign Pax Silica Supply Chain Pact

The United States Department of State and the Taiwanese government convened the sixth U.S.-Taiwan Economic Prosperity Partnership Dialogue in Washington on January 28, 2026. The high-level forum, the first since Donald Trump returned to office, resulted in the signing of an agreement on economic security and statements on the Pax Silica Declaration, a U.S.-led initiative designed to secure semiconductor and AI supply chains.

Officials led by U.S. Under Secretary for Economic Affairs Jacob Helberg and Taiwan Economy Minister Kung Ming-hsin focused on reducing reliance on China. The two sides agreed to explore low Earth orbit satellite development and protect submarine cables to mitigate risks of sabotage. Discussions also covered critical mineral exploration, drone component certification, and the development of large language model applications for traditional Mandarin.

Economic commitments included a deal to cut tariffs on Taiwanese exports to the U.S. In return, Taiwanese companies pledged $250 billion to expand production in the United States, with Taipei providing an additional $250 billion in credit. Minister Kung noted that U.S. firms, including Nvidia, Advanced Micro Devices, and Micron Technology, are investing over $15 billion in Taiwan to establish supply chains independent of China. Separately, the Industrial Technology Research Institute signed a drone cooperation agreement with the Association for Unmanned Vehicle Systems International.