Governor Greg Abbott recently embarked on an economic development trip to East Asia, with Taiwan being the first stop. His visit with Taiwanese leaders culminated in a historic announcement: the forthcoming establishment of a State of Texas Taiwan Office in Taipei. This bold move signifies the Lone Star State's commitment to strengthening bilateral ties with Taiwan, particularly in economic and trade relations.
During his visit, Governor Abbott met with Taiwanese President Lai Ching-te and Minister of Economic Affairs Jyh-Huei Kuo. Reflecting on the occasion's significance, President Lai Ching-te made clear that the State of Texas Taiwan Office “will create new and trailblazing opportunities for even stronger collaboration between Taiwanese and US businesses."
"We understand, both in Texas and in the United States, the importance of a strong Taiwan for the future of the entire globe," Abbott said during the signing ceremony of the Economic Development Statement of Intent, which is yet another initiative intended to promote investment, job creation, and trade operations between Taiwan and Texas.
Taiwan has proven to be a key partner for Texas, emerging as its seventh-largest trading partner and contributing over $5 billion in foreign direct investment in 2022 alone. Governor Abbott highlighted the mutually beneficial potential of a stronger relationship for both entities, specifically in vital and rapidly expanding industries that Taiwan flourishes in, including semiconductors and energy.
Looking at the semiconductor space in particular, increased collaboration between Texas and Taiwan in this industry can drive innovation, bolster supply chains, and enhance technological advancements for both regions. Taiwan stands as the global leader in semiconductor production, supplying over 90% of advanced chips used in smartphones, aircraft, electric vehicles, and artificial intelligence. As our world becomes increasingly reliant on semiconductor technology, it's crucial that we work together with Taiwan to capitalize on Texas’ momentum and pave the way for a promising future.
Taiwanese companies already have a robust presence in Texas, representing the fourth largest source of foreign direct investment (FDI), including from leaders such as Formosa Plastics, TSMC, Nanya Technology, CPC Corporation, and GlobiTech.
Governor Abbott underscored the shared values and strong economic links between Texas and Taiwan, emphasizing Taiwan's stability and growth as integral to global prosperity. He remarked during the ceremony:
"The role that Taiwan plays on the global stage is so incredibly important for so many reasons. Trade is an obvious one, semiconductors, technology, innovation is another one. But what you do also is so important for world peace and for democracy."
The establishment of the State of Texas Taiwan Office marks a significant milestone in Texas' international engagement. It represents only the second diplomatic office opened abroad by the state since the 20th century, following its office in Mexico. This office will serve as a dedicated platform to facilitate trade missions, attract investments, and promote cultural exchanges between Texas and Taiwan.
As global dynamics continue to evolve, partnerships like the one between Texas and Taiwan will play an increasingly pivotal role. By leveraging each other's strengths and fostering innovation-driven collaborations, both regions stand to benefit immensely. Governor Abbott's proactive approach to expanding Texas' global footprint underscores the state's readiness to embrace new opportunities and navigate the complexities of international relations. Texas and Taiwan are poised to lead by example in international cooperation, setting a precedent for sustainable development and prosperity in the 21st century.
-Glenn Hamer, President & CEO, Texas Association of Business
Learn more about the new State of Texas Taiwan Office.
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