US Secretary of State added fuel to the fire on Monday when he told a congressional hearing in Washington that discussions would begin on a trade deal.
Though Washington severed diplomatic relations with Taipei in 1979 to recognize Beijing as China's sole official representative, the United States remains Taiwan's most powerful ally and its top arms supplier.
Semiconductors are an essential part of modern tech from smartphones to games consoles and new cars, with the auto industry one of the hardest hit by the shortage.
The country's industrial production for April marked the 15th consecutive month of year-on-year growth, even as it battles a sharp rise in coronavirus infections.
However, stocks markets in the developing economies of Indonesia, Malaysia and the Philippines were broadly lower as worries over the virus and its impact on their economies remain.
In a poll by Reuters last week, all 25 of economists surveyed see the Monetary Policy Committee (MPC) of South Africa's Reserve Bank (SARB) keeping its repo rate unchanged for a fifth straight meeting at a record low 3.5% next week.
He was using language from the Taiwan Relations Act, under which the United States is obliged to provide the island with the means to defend itself against Beijing.
“John’s work has exposed truth the Chinese authorities did not want the world to know,” BBC News said. “The BBC is proud of John’s award-winning reporting during his time in Beijing and he remains our China correspondent.”
Palau is one of only 15 nations that officially recognise Taiwan over China, which views the self-ruled democratic island as its own territory and has vowed to one day seize it.