Taiwan President Lai Ching-te says he will communicate with the United States to address President Donald Trump's concern that the US is suffering a loss because of Taiwan's semi-conductor industry.

Trump told reporters on Thursday that "Taiwan took our chip business away," and "we want that business back."

Lai said on Friday in Taipei that his administration will communicate and discuss with Taiwan's semiconductor industry, and that it will come up with good proposals and engage in further discussions with the US.

The Taiwan leader emphasized his desire to seek a solution to the chip friction with the US through talks.

Lai also noted that Trump confirmed the importance of peace and stability across the Taiwan Strait at the recent Japan-US summit, and that Trump is strongly aware of China's threat.

Lai said his "Democratic Progressive Party government has worked closely with President Trump ever since his first term in office, and has remained an international partner." Thus he showed willingness to further strengthen cooperation with the US.

Lai also said his administration is working to propose a special budget to raise defense spending to more than 3 percent of Taiwan's GDP, to beef up defense capabilities.