Taiwan Bets on Paraguay to Build a Tech Bridge in South America

Taiwan’s Foreign Minister Lin Chia-lung visited Paraguay in July, meeting with President Santiago Peña to strengthen diplomatic and economic ties between the two countries.

Taiwan and Paraguay have officially partnered since 1957. Today, Paraguay stands as Taiwan’s only ally in South America and one of just 12 countries that recognize it as a sovereign state.

Lin led a delegation of over 30 top Taiwanese business leaders from industries such as semiconductors, smart farming, green tech, and manufacturing. The visit focused on moving their partnership beyond diplomacy and into long-term high-tech cooperation.

One of the main projects discussed is a new $150 million Smart Technology Park in Minga Guazú. The park will host technology companies working in chip production, renewable energy, and artificial intelligence.

It aims to create skilled jobs and help diversify Paraguay’s economy, which still depends largely on soy, beef, and hydroelectric power. Education and training are also part of the plan.

The Taiwan-Paraguay Polytechnic University has trained more than 170 engineers, preparing local talent for modern industries.

Paraguay Strengthens Ties with Taiwan

Taiwan also supports over 1,000 Paraguayan public clinics through a national health data system and finances public housing for 8,000 low-income families through a $200 million credit line.

President Peña reaffirmed strong ties with Taiwan despite pressure from China, which has offered investment deals in exchange for switching diplomatic recognition.

Paraguay continues to say no. In 2023, the government expelled a Chinese diplomat who reportedly tried to influence lawmakers on the issue.

Taiwan and Paraguay will also drop visa requirements starting July 25 to ease travel for business and education. This alliance offers Taiwan a political and trade foothold in Latin America while giving Paraguay access to high-tech industries and funding support.

Instead of following global trends, both countries are betting on a quieter but stronger path built on shared interests and concrete results.