The United States has announced a $11.5 billion arms deal with Taiwan. The deal would include medium range missiles, howitzers, and drones.
The Taiwan government has pledged to raise defense spending 3.3% of the gross domestic product next year and reach 5% by 2030.
Trump requested they spend 10%, but the demand was pushed back by Taiwan’s KMT party and some of the population.
I think its important to note that Taiwan is home to the largest chip manufacturer TSMC. (Taiwan Semiconductor Manufacturing Company)
TSMC is responsible for over 60% of chips in the entire world and is one of the sole providers for chips in the AI field.
My interpretation here is that not only are we bolstering Taiwan’s defense against China, we are also trying to secure the chip supply chain.