Taiwan has expanded its 'chip diplomacy' by signing tech agreements with Canada and establishing an office in Prague to support Czech chip design engineers. This is part of Taiwan's strategy to leverage its semiconductor industry leadership to enhance international relations, despite China's opposition. Taiwan Semiconductor (TSM) plays a crucial role, with the U.S. funding a major TSMC project in Arizona and plans for TSMC facilities in Germany. Taiwan's semiconductor growth is driven by global demand and U.S. expansion, with TSMC expecting a 5% profit increase in the first quarter.