Arizona's recent trade delegation to Taiwan, led by Governor Katie Hobbs, has solidified the state's position as a critical hub in the global semiconductor industry. The visit, marked by high-level meetings with Taiwanese President Lai Ching-te and the Taiwan Semiconductor Manufacturing Company’s (TSMC) global leaders, underscores the deepening strategic partnership between Arizona and Taiwan.
Governor Hobbs' trip, accompanied by Arizona Commerce Authority President and CEO Sandra Watson, aimed to capitalize on the developing momentum in Arizona's high-tech manufacturing sector. As a recent news release highlighted, the Governor emphasized Arizona’s emergence as "America’s hub for advanced manufacturing," creating numerous high-paying jobs and attracting billions in investment.
The cornerstone of this collaboration is TSMC's historic $165 billion investment in Arizona. This massive undertaking, which includes plans for multiple semiconductor fabs, advanced packaging facilities, and a research and development center, is poised to transform the greater Phoenix area into North America's premier semiconductor manufacturing hub.
President Lai Ching-te noted that TSMC’s expansion represents "the largest greenfield investment in U.S. history."
The impact of this partnership extends beyond mere economic growth. It fosters a robust innovation ecosystem, attracting cutting-edge technology companies and artificial intelligence industry suppliers. Watson emphasized the "long and robust partnership with Taiwan" that spans technology, defense, supply chain, cultural exchange, and workforce development.
Governor Hobbs' visit reinforced Arizona's commitment to supporting TSMC's success. She stated that her administration is "fully committed to strengthening this relationship in every way possible, because when Arizona and Taiwan succeed, we all succeed." This commitment is further evidenced by her early visit to TSMC’s Fab 21 following the start of 4nm chip production on U.S. soil.
From Taiwan's perspective, the relationship with Arizona is equally vital. President Lai Ching-te's remarks highlighted the "close economic and trade relations" between the two regions, with Taiwan being Arizona’s eighth-largest export market and fifth-largest source of imports. He also stressed the importance of creating "non-red supply chains," signifying a strategic move to diversify and secure critical technology supply lines.
A key point of discussion was the potential signing of an agreement to avoid double taxation. President Lai believes this would "provide greater incentives for Taiwanese businesses to invest in the U.S., facilitate the establishment of more comprehensive local industry clusters, and generate more job opportunities, representing a win-win outcome."
The benefits of this partnership are evident in Arizona's recent economic growth. Besides TSMC, the state has seen significant investments from companies like Amkor, LG Energy Solution, ASM, American Battery Factory, Intel, and Sunlit Chemical. Furthermore, the selection of ASU Research Park as a CHIPS for America R&D Flagship Facility underscores Arizona’s growing prominence in semiconductor research and development.
Governor Hobbs' visit also highlighted the strong cultural ties between Arizona and Taiwan, with a growing Taiwanese community in the state. The mention of Din Tai Fung’s upcoming arrival in Arizona further illustrates the deepening cultural exchange.
The trade delegation to Taiwan has solidified Arizona's position as a key player in the global semiconductor industry. The strategic partnership with Taiwan, anchored by TSMC’s massive investment, drives innovation, creates jobs, and strengthens economic ties between the two regions. As Governor Hobbs stated, "There is no limit to what we can achieve together," and the future of this collaboration looks incredibly promising.
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