Since October 7, Israel has found itself navigating old alliances - some openly strained and others quietly eroded. However, certain partnerships have only grown stronger. One of the most unexpected yet consequential is Taiwan - the small but technologically formidable island nearly 8,000 kilometers away which, like Israel, sits at the crossroads of innovation and geopolitical pressure.
Both nations have pursued policies of technological innovation, see economic resilience as a matter of national security, and both operate under the looming shadow of war. In Israel’s case, it is an increasingly hostile Middle East; for Taiwan, it is the ever-present threat of China. Amid the turbulence in both regions, Taiwan has quietly become one of Israel’s closest allies on the diplomatic stage and has only deepened economic and technological ties.
Taiwan’s Mission in Israel#
This growing partnership is reflected in the Taipei Economic and Cultural Office in Tel Aviv, first established in 1993, which serves as Taiwan’s diplomatic and commercial bridge to Israel. Diplomatic protocol prevents Taiwan from establishing formal embassies in many parts of the world, but this hasn’t hindered the head of Taiwan’s mission, Representative Abby Lee, in her efforts to promote closer ties between the two nations.
“Over the past three decades, we’ve built strong ties in science, investment, education, and trade,” Lee says. “This serves as an important foundation for the two nations to move forward.”
For Lee, the connection between the two nations is more than just strategic - it’s a relationship built on deeply similar values, goals and challenges. Lee has served in Israel for three years, witnessing firsthand the country’s determination in the wake of October 7. “Even though Israel is fighting on multiple fronts, it remains willing to share knowledge with like-minded countries like Taiwan - knowledge that is much needed as we face tremendous pressures from China through its hybrid toolkits.”
The Silicon Shield#
Taiwan has long been a global center for technology and manufacturing. It produces over 60% of the world’s semiconductors and nearly 100% of AI chips, earning it the nickname “the silicon shield.” Tech giants like NVIDIA, Amazon, Google, and Microsoft have all established a presence on the island, recognizing its unparalleled expertise in deep tech.
Lee notes that the drive to build Taiwan as an economic and technological center is, as for Israel, a matter of survival. “Both countries lack natural resources. We have to invest in human capital and education - those are our weapons.”
Complementary Strengths#
The economic relationship between Israel and Taiwan is growing stronger, particularly in areas where their strengths complement each other. “Israel is famous for startup innovation - taking ideas from zero to one. Taiwan, on the other hand, has the high-tech talent and industrial capacity to scale those ideas from one to infinity,” Lee explains.
Taiwan excels in hardware; Israel leads in software, cybersecurity, and AI. The synergy is clear, with Taiwanese giants like the Taiwan Semiconductor Manufacturing Company (TSMC) investing in Israeli semiconductor startups and Taiwanese companies opening R&D or sales offices in Israel, such as Winbond, ASUS, Merida, Vivotek, and Nuvoton. Likewise, Israeli companies are opening offices in Taiwan including Nova, Radware, Taboola, and OurCrowd.
Patty Lin, Director of the Taiwan Trade & Innovation Center in Tel Aviv (TAITRA), describes Taiwan as “a very good place for Israeli startups to start if they want to enter the Asian market.” Unlike most TAITRA offices, which focus solely on trade, the Tel Aviv branch is dedicated to fostering innovation. “Every month, we connect Israeli startups with Taiwanese companies, send them to exhibitions, and facilitate collaboration in key areas like semiconductors, AI, and medical technology.”
Israeli Entrepreneurs in Taiwan#
Dov Moran, the Israeli entrepreneur behind the USB flash drive and managing partner at Grove Ventures, has worked closely with Taiwan’s tech ecosystem for decades. “Taiwan became an important hub for all activities in East Asia. The people there are amazing - excellent engineers, incredibly hardworking, and extremely organized,” he says.
Moran’s connection with Taiwan dates back to 1994 when he opened an office there while leading M-Systems. Since then, he has maintained close ties with TSMC and other Taiwanese firms. “Israel is strong at entrepreneurship and ideation, but we struggle with execution. Taiwan excels at that. Their ability to perform and deliver is unmatched.”
His experience reflects a broader trend of Israeli entrepreneurs and investors looking to Taiwan as a key partner in tech development. “Deep tech is Taiwan’s specialty. If you’re working in semiconductors, materials, space, or AI, there’s no better place to collaborate.”
Alon Webman, co-founder of Chain Reaction, a semiconductor startup with offices in Israel, the U.S., and Taiwan, has also built strong ties with Taiwan’s industry. “From day one, we needed strong connections with TSMC - they are the number one ASIC manufacturer in the world. Taiwan has positioned itself as a global player, and working with them has been essential to our success.”
Global Implications#
For Taiwan, October 7 was a reminder of the vulnerabilities faced by small democracies in volatile regions. “Taiwan saw October 7 as more than just a regional conflict - it was a clash between democracy and terrorism and authoritarianism. We were among the first to express our solidarity and our relationship with Israel has strengthened,” says Lee.
Taiwan’s unparalleled dominance in semiconductors has made the nation an indispensable pillar of the modern economy. “If China invades Taiwan, it would be catastrophic for the entire semiconductor industry. If you use an iPhone, that might be your last iPhone,” says Moran.
The global reliance on Taiwanese chips has deterred, but not eliminated, Beijing’s aggression, as any disruption would send shockwaves through supply chains and economies worldwide. “This isn’t just in Taiwan’s interest,” Lee stresses. “It’s a shared interest for the entire world.”
Source: CTech
