TAIPEI, Taiwan — Taiwan’s President, William Lai Ching-te, emphasized that the significant investment by a Taiwanese semiconductor company in Arizona is a premier example for Taiwan’s strategy of developing a computer chip supply chain independent of Chinese manufacturers. He made these remarks during a meeting with Arizona Governor Katie Hobbs, who was visiting the island.
Taiwan’s top chipmaker, TSMC, has pledged a substantial $100 billion to develop three chip factories, a research and development hub, and two packaging plants in Arizona. This is in addition to a previous commitment of $65 billion towards three chip foundries in the state, with the first one already operational.
Both Lai and TSMC clarified that this recent enormous investment was driven by customer needs rather than any coercion from the administration of former President Donald Trump. Trump had earlier accused Taiwan of taking the U.S. chip business and expressed a desire to reclaim it.
During their meeting, Lai mentioned that Taiwan and Arizona are collaborating to establish a supply chain that excludes Chinese suppliers, amid military threats from China over its claims on Taiwan. TSMC assured that the U.S. expansion would not hinder its projects in Taiwan, maintaining a workforce of 10,000 focusing on the development of 1.0 nanometer chips. Taiwan currently produces over 90% of the world’s advanced computer chips.
Although the United States does not officially recognize Taiwan as a sovereign nation, it remains Taiwan’s most robust ally and major arms supplier. These developments were reported on Wednesday by Taiwan’s official Central News Agency.
The Arizona project is set to create 40,000 construction jobs in the next four years, alongside thousands of technology and manufacturing positions, as detailed in a statement from Hobbs’ office prior to the meeting. Governor Hobbs expressed enthusiasm over Arizona’s rise as a hub for advanced manufacturing, highlighting the creation of numerous well-paying jobs and significant financial investment in the state.
Hobbs was quoted as saying that TSMC’s involvement would not only propel global advancements in artificial intelligence and other technologies but also bolster bilateral relations.
