The State of Florida signed a Memorandum of Understanding (MOU) with Taiwan’s Ministry of Economic Affairs to strengthen ties in trade and investment, with a focus on semiconductor manufacturing, officials announced on Friday.

The agreement, signed by FloridaCommerce and SelectFlorida on behalf of the state, aims to facilitate collaboration in research, workforce development, and supply chain integration. Taiwan’s International Trade Administration, which represents the island’s globally dominant semiconductor industry, is the other signatory. The MOU is valid for five years and may be extended for an additional five years upon a written agreement by the participating parties.

“Taiwan and Florida established a sister state relationship in 1992 and have enjoyed a long friendship since, including numerous sister city relationships and more recently Florida reemergence in the semiconductor sector. Accordingly, the signing of the Taiwan-Florida MOU is a building on that history and beginning a new phase to this important partnership,” said Florida Secretary of Commerce J. Alex Kelly.

The move aligns with broader U.S. efforts to bolster domestic semiconductor production amid global supply chain disruptions and rising geopolitical tensions. Taiwan produces more than 60 percent of the world’s semiconductors, making it a major player in addressing the global chip shortage. While the MOU is non-binding, it signals an intent to establish deeper economic ties and could pave the way for investment in manufacturing facilities in the state.

“This MOU aligns with the broader goals of the U.S.-Taiwan Technology, Trade, and Investment Collaboration (TTIC) Framework,” said Director General Cynthia Kiang. “It symbolizes a shared vision for closer economic and trade cooperation and reflects our mutual dedication to building a resilient and innovative global economy.”

The partnership also positions Florida to benefit from federal incentives under the CHIPS and Science Act, which allocates $52 billion to promote semiconductor production and innovation in the United States.

The MOU additionally aims to enhance two-way trade, investment, and industrial collaboration across multiple sectors beyond semiconductor manufacturing, including advanced manufacturing, aerospace and defense technology, marine industries, life sciences, agricultural technology, logistics, and clean technology. To achieve these objectives, the agreement emphasizes activities such as sharing business information, facilitating on-site visits, providing support to companies from both parties, organizing briefings, and jointly identifying opportunities in priority industries.

In recent years, Florida’s political leaders have forged business ties with several nations, including the United Kingdom, Japan, South Korea, and Israel.