Taiwan and Singapore are now each other's key partners in AI and chips, and both sides want the Taiwan Strait kept calm — good news for the region's supply chains.

• Taiwan passed China and Malaysia to become Singapore's biggest trading partner, with trade between them up sharply last year and nearly doubling in the first half of this year.
• Almost all of that trade is AI chips and related parts, in both directions.
• Singapore is now Taiwan's largest source of foreign investment, with money flowing in many times faster than last year.
• A new tax deal signed last December takes effect for investors from 2027, giving both sides steadier rules.
• Both governments share two goals: keep the status quo in the Taiwan Strait, and keep regional supply chains safe — Singapore has repeatedly opposed any one-sided move to change the status quo.

Outlook: Expect the chip trade between Taiwan and Singapore to keep growing, with both sides pushing cooperation into smart cities, biotech and green energy.