Taiwan and South Korea are talking up closer trade and chip cooperation, a positive sign for both countries' tech industries and a signal of alignment against China's supply chains.

• Trade between the two sides is $80 billion a year and is heading toward $100 billion, driven by chips and AI.
• South Korea's new representative in Taipei, Hwang Jae-ho, wants a broader partnership that makes the two economies a driver of global tech growth.
• Taiwan's deputy foreign minister Wu Chih-chung called for building a secure "non-red" supply chain, meaning one that leaves China out.
• Two-way trade jumped 40% in 2025 to a record, with South Korea running the surplus.
• Taiwan also tied its own security to the Korean peninsula, backing a nuclear-free North Korea and warning against moves that destabilize the region.

Outlook: Expect more chip and AI cooperation between Taipei and Seoul, with trade closing in on the $100 billion mark.