The US will not “punish” Taiwan’s world-leading semiconductor sector with high tariffs, a minister has said, adding that Taipei would help the US learn from the industrial model that turned it into a chipmaking powerhouse.

“They understand that punishing Taiwan is not in their interests,” Wu Cheng-wen, who oversees Taiwan’s National Science and Technology Council told the Financial Times, adding that Taipei and Washington had reached a “consensus” that Taiwan would support the development of the US chip industry in exchange for tariff relief.

The comments from Wu come as Taiwan is seeking to finalise a tariff deal with the US, and is awaiting the conclusion of a US national security investigation that could result in levies on its crucial semiconductor sector, led by Taiwan Semiconductor Manufacturing Company.