Taiwan’s Leader Applauds Arizona Chip Initiative in Meeting with Governor

TAIPEI, Taiwan (AP) — Taiwan’s President William Lai Ching-te hailed a Taiwanese semiconductor company’s extensive investment in Arizona as the “best model” for diversifying the island’s computer chip supply chains away from reliance on Chinese manufacturers. This statement was made during a meeting with Arizona Governor Katie Hobbs, who visited Taiwan.

Leading Taiwanese chipmaker TSMC has pledged $100 billion to establish three chip foundries, a research and development center, and two packaging facilities in Arizona. This is in addition to an earlier commitment of $65 billion to build three foundries, one of which is already operational.

During the meeting, Lai emphasized that the significant investment from TSMC was driven by customer demand rather than any external pressure, specifically addressing former President Donald Trump’s claims about Taiwan’s role in the U.S. chip industry.

Lai and TSMC’s executives are collaboratively working to establish a “non-red” supply chain, specifically targeting the exclusion of Chinese suppliers amidst rising military tensions over Taiwan’s sovereignty. TSMC assured that these developments in the U.S. will not impact its ongoing operations in Taiwan, where the company employs around 10,000 individuals focused on the research and development of 1.0 nanometer chips. Notably, Taiwan continues to dominate over 90% of the global advanced semiconductor production.

While the U.S. does not officially recognize Taiwan as a separate nation, it remains its staunchest ally and primary supplier of arms. The details of the meeting were subsequently disclosed by Taiwan’s official Central News Agency.

The ambitious TSMC project is projected to generate 40,000 construction jobs over the next four years, along with many tech and manufacturing positions, according to a statement released by Hobbs’ office prior to the meeting. “I’m thrilled by Arizona’s emergence as America’s hub for advanced manufacturing, creating hundreds of thousands of good-paying jobs and bringing billions of dollars of investment into our state,” Hobbs remarked.

Moreover, Hobbs expressed optimism, stating that the TSMC initiative would significantly contribute to advancements in artificial intelligence and technology while further solidifying bilateral relations.