Taiwan Seeks Expanded Chip Investment in Arizona, President Lai Says
Taiwanese President Lai Ching-te said on Friday that Taiwan hopes to see further semiconductor investment in the U.S. state of Arizona, reinforcing industrial and diplomatic ties between Taipei and Washington. Speaking during a meeting with U.S. Senator Ruben Gallego, Lai highlighted that the collaboration between Taiwan and the United States continues to be a cornerstone of the global semiconductor industry.
Strengthening Taiwan–U.S. Cooperation
Lai praised the achievements of Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, which is investing $165 billion to build cutting-edge factories in Phoenix, Arizona. The facilities are set to produce advanced semiconductors that power artificial intelligence systems and next-generation computing technologies.
“We look forward to even more semiconductor manufacturing, research and development facilities springing up in the greater Phoenix area. This will continue to strengthen Taiwan–U.S. relations,” Lai said.
The meeting marked Senator Gallego’s first in-person engagement with President Lai and came shortly after a major trade deal between the two sides. Last week, Taiwan and the United States agreed to reduce tariffs on Taiwanese exports to the U.S. from 20% to 15%, a move expected to deepen economic cooperation.
Expanding Investment and Credit Support
Beyond tariff cuts, Taiwan has pledged $250 billion in investments to boost semiconductor, energy and artificial intelligence production in the United States. Taipei will also guarantee an additional $250 billion in credit to facilitate further expansion.
Senator Gallego commended Taiwan’s growing presence in Arizona’s technology landscape, noting that the state has become a hub for advanced manufacturing and semiconductor innovation. “The amount of investment happening in Arizona right now from Taiwanese firms, especially TSMC, is impressive. We are the envy of other states and we want to continue to see that growth,” he said.
Strategic and Diplomatic Significance
The United States remains Taiwan’s most important international backer and leading arms supplier, despite the absence of formal diplomatic ties. Increased cooperation in technology and manufacturing is seen as reinforcing both nations’ strategic and economic partnership at a time of heightened global competition in chip production.
Lai’s remarks underscore Taiwan’s ambition to maintain a strong technological alliance with the United States while supporting Arizona’s emergence as a key hub for semiconductor innovation.
with inputs from Reuters
