Just like the OP, I too was also born to U.S. parents in Taiwan in the late 1970s. However, my mother (who was previously a citizen of R.O.C.) put down "China" as my birthplace.

I am not sure how to change it so that it reads USA instead, but if I am not mistaken, one would also need to list down the state where they were born (like "Delaware U.S.A." appearing as place of birth in the passport).

As for me, I am very tempted to see if I could change my place of birth to "The Empire of China" (the pre-1912 China) as my birthplace. Or maybe I could put down "Japan" or "The Netherlands" since they both seem to have an influence over Taiwan's history. :-)

[OT: Sometime in the early 1990s, the US State Dept. started to allow Taiwan-born passport holders to list "Taiwan" as the place of birth; but, then I started to hear anecdotal reports of people who did just that and started to run into problems with PRC immigration authorities at airports. Some of these reports included denied admission to the PRC as a result of listing "Taiwan" as the birthplace.]