U.S. Treasury Secretary: The U.S. will reduce the single-point risk of Taiwanese chips, and U.S.-Taiwan relations remain robust

U.S. Treasury Secretary Bessent (Scott Bessent) addressed Taiwan-related issues at the New York Times DealBook Summit (DealBook Summit), with topics ranging from whether the U.S. would defend Taiwan to risks in the semiconductor supply chain becoming focal points. He declined to answer hypothetical questions about military matters, only emphasizing that U.S.-Taiwan relations “have not changed.” At the same time, he pointed out that a disruption in Taiwan’s chip production would pose the greatest risk to the global economy, and that the U.S. policy of de-risking does not mean reducing Taiwan’s importance.

Bessent still refuses to state whether the U.S. would defend Taiwan if China invades

The host pointed out that Taiwan has significantly increased its defense spending in recent years, mainly out of concern that China might take military action, and directly asked Bessent:

“If China invades Taiwan, will the United States intervene?”

Bessent clearly refused to answer such hypothetical questions, adding that the media loves to use words like “might” to stir up emotions and speculation, but he was unwilling to engage in such hypothetical scenario planning.

Are U.S.-Taiwan relations stable? Bessent: The relationship has not changed

When pressed by the host:

“How should the Taiwanese people view the U.S. position? Is the U.S. a reliable ally?”

Bessent responded that Taiwan should view the relationship as unchanged and that things are still at a very good balance point. While discussing the relationship, he briefly misspoke by saying “the U.S. is China’s ally,” but quickly corrected himself to “the U.S. is Taiwan’s ally, and the relationship remains unchanged.”

His entire response maintained diplomatic language, deliberately avoiding any concrete commitments and not mentioning any details about military assistance.

(Anduril founder: Taiwan shouldn’t wait for foreign aid—save itself first by leveraging its own chip industry)

Global chip production is too concentrated in Taiwan, creating the biggest single-point economic risk

Later in the discussion on supply chain de-risking, Bessent brought the topic back to Taiwan, noting that one of the greatest risks to the global economy is the “single point of failure” in Taiwan’s semiconductor industry.

He emphasized that TSMC (TSMC) and Taiwan hold a central position in the global chip supply chain, and if chip production in Taiwan is disrupted, the global economy could face catastrophic impacts. Thus, he advocated for the U.S. to promote supply chain de-risking rather than comprehensive decoupling from China, and pointed out that previous U.S. administrations have done nothing about de-risking.

(Taiwan considers chip export control measures, MOFA: Don’t want to use them but will respond if necessary)

Chips moving back to U.S. production—Bessent denies Taiwan’s importance is declining

The host raised another sensitive question:

“If the U.S. increases its own chip production in the future, will Taiwan still be as important to the U.S.? Will the U.S. be less willing to take risks for Taiwan because of its stronger self-sufficiency?”

Bessent directly denied this, likening it to “because I bought insurance, I’d want my house to catch fire,” saying this is a flawed analogy.

Bessent stressed that “de-risking” does not mean abandoning Taiwan, and supply chain diversification does not mean reducing Taiwan’s importance. However, he still did not clearly state whether the U.S. would send troops to defend Taiwan in the event of a cross-strait conflict.

(U.S. chip investment expert: Even if China starts a war, it can’t get TSMC; U.S., Japan, and South Korea have long established semiconductor defense lines)

This article U.S. Treasury Secretary: U.S. will reduce single-point risk from Taiwan’s chips, U.S.-Taiwan relations remain stable first appeared on Chain News ABMedia.