£8.9 billion, and a new agreement on chips, photonics and space
What happened
On 2 October 2026 the UK and Taiwan held their 28th annual Trade Talks in London. Two agreements came out of it. The first is a new Science, Innovation and Technology Arrangement between the two sides. The second is a memorandum of understanding between UK Export Finance and Taiwan's EximBank, which is the kind of paperwork that helps companies get the finance to trade. The list of areas covered is long: semiconductors, photonics, space, next-generation communications, digital trade, clean energy, advanced manufacturing, telecommunications, net zero and standards for artificial intelligence. Taiwan is the UK's sixth-largest trading partner in the Asia-Pacific region. Trade between the two was worth £8.9 billion in 2025. The UK side was led by the Minister for Trade, Lord Sarwar. Taiwan was represented by its Deputy Minister of Economic Affairs, Cynthia Kiang. Also present were the UK's National Technology Adviser, Dr Dave Smith, the British Representative in Taipei, Ruth Bradley-Jones, Taiwan's Representative in London, Vincent Yao, and the Minister for Space, Cyber and Regulatory Reform, Baroness Lloyd. Lord Sarwar said: "The UK and Taiwan share a strong trading relationship that is delivering growth, jobs and investment for both economies."
Why this matters
Semiconductors are the reason this is not just a trade story. Taiwan makes a very large share of the world's most advanced chips. Those chips end up in phones, cars, hospital scanners, insulin pumps, and the computers that run NHS systems. A country that wants reliable access to modern technology has to think about where its chips come from. The other areas matter for similar reasons. Photonics is the technology of light - lasers, sensors, fibre optics. It underpins everything from broadband to surgical tools. Next-generation communications is the groundwork for faster, more reliable networks. There is also a quieter line in the announcement: standards for artificial intelligence. Standards sound dull, but they decide what counts as safe, testable and interoperable. Whoever helps write them shapes what gets built. Dr Dave Smith, the UK's National Technology Adviser, put the logic simply: "The UK and Taiwan are natural partners in emerging technologies... Our strengths are genuinely complementary." That is a fair description. Taiwan manufactures at scale. The UK has strengths in research, design and regulation.
What the evidence actually says
It is worth being clear about what has and has not been agreed. An 'arrangement' is not a trade treaty. It sets out areas for cooperation and creates a framework for working together. It does not cut tariffs or guarantee investment. The announcement does not attach a funding figure to it. The UK Export Finance memorandum is more concrete in its effect, but still indirect. Export credit agencies help underwrite deals. They do not make deals happen on their own. The £8.9 billion trade figure for 2025 is a real, measured number. 'Sixth-largest Asia-Pacific trading partner' is also a factual ranking rather than a claim about growth. What the announcement does not say is equally notable. There is no stated target for increasing trade, no named projects, and no timetable. These talks have run annually for 28 years, which tells you this is a steady relationship being maintained rather than a sudden shift. So: a genuine, documented step, with real signatures and real figures behind the relationship, but not a transformation.
Practical advice
If you run a small or medium-sized UK business and have wondered about exporting, the practical takeaway is the UK Export Finance element. UK Export Finance is a government department. It can provide guarantees, insurance and loans to help UK companies win and fulfil export orders, including to markets that commercial lenders find difficult. Its support is free to enquire about. Start with the Department for Business and Trade's export support service, which is also free, before paying a consultant. If you work in semiconductors, photonics, space or communications and do research, watch for calls for collaboration under the new arrangement. Science agreements usually turn into funded calls eventually, and the early ones are the least competitive. If you are a student or early-career engineer, this is a reasonable signal about where the UK is placing bets. Photonics and next-generation communications are both areas where UK universities have genuine strength and where demand is unlikely to fall. And if none of that applies to you, the honest answer is that this announcement will not change your week.
What to know
The UK and Taiwan held their 28th annual Trade Talks in London on 2 October 2026 and signed a new Science, Innovation and Technology Arrangement, plus a memorandum of understanding between UK Export Finance and Taiwan EximBank. Cooperation covers semiconductors, photonics, space, next-generation communications, digital trade, clean energy, advanced manufacturing, telecommunications, net zero and AI standards. Taiwan is the UK's sixth-largest Asia-Pacific trading partner, with £8.9 billion of trade in 2025. No funding figure, target or timetable was announced. It is a framework for cooperation rather than a trade deal. Sources: Department for Business and Trade and Department for Science, Innovation and Technology (GOV.UK), 'UK and Taiwan deepen trade and technology cooperation', 2 October 2026, https://www.gov.uk/government/news/uk-and-taiwan-deepen-trade-and-technology-cooperation; UK Export Finance (GOV.UK), 'UK Export Finance', https://www.gov.uk/government/organisations/uk-export-finance; Department for Business and Trade (GOV.UK), 'Get help with exporting', https://www.gov.uk/ask-export-support-team This article is for general information. It is not business, trade, financial or legal advice, and it does not replace advice from a qualified professional.
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