TAIPEIBERLIN, Aug 9 Reuters Taiwan said on Wednesday chipmaker TSMC39;s 3.5 billion euro 3.83 billion investment in Germany would drive deeper engagement between the island and Europe, while Berlin said it was a positive sign for bilateral ties.

For Taiwan, under increasing pressure from Beijing to accept China39;s sovereignty claims over the island, the investment in a new factory is a show of goodwill towards Europe, even if the European Union has shown no desire to proceed with a Bilateral Investment Agreement BIA that Taipei has long sought.

TSMC39;s investment in Europe will help bring even closer cooperation between Taiwan and the EU, Taiwan Economy Minister Wang Meihua told reporters in Taipei, when asked if signing a BIA would bring more Taiwanese chipmakers into the bloc.

Just like how Taiwan and the United States are continuing to strengthen cooperation… TSMC going to Europe will certainly strengthen bilateral relations in the future, she said, referring to a recently signed trade deal with Washington.

Taiwanese officials, while noting that TSMC39;s investments are a company decision, have also said European countries should strengthen ties with Taiwan if they want continued semiconductor cooperation.

Germany also hailed TSMC39;s move as a sign of strong bilateral ties.

This is a private decision that the federal government welcomes and supports, a government spokesperson said on Wednesday. Economic relations are always good for bilateral relations….