Taiwan praises Arizona chip investment to reduce China reliance

Taiwan’s President William Lai Ching-te praised a significant investment by Taiwanese semiconductor company TSMC in Arizona. He called it the “best model” for reducing dependence on China for computer chip supplies. TSMC plans to invest $100 billion in Arizona to build three chip foundries, a research and development center, and two packaging facilities. This follows a previous commitment of $65 billion for three additional chip foundries, one of which has already started operations. Lai stated that the decision for the investment was driven by customer demand, rather than pressure from former U.S. President Donald Trump. Trump had previously claimed Taiwan was taking U.S. chip business and expressed a desire to regain it. During a meeting with Arizona Governor Katie Hobbs, Lai mentioned that both Taiwan and Arizona aim to create a supply chain that excludes Chinese suppliers. China has threatened military action regarding its claims over Taiwan. TSMC assures that its development efforts in the U.S. will not affect its operations in Taiwan, where it employs around 10,000 people focused on developing cutting-edge chip technology. The Arizona project is anticipated to generate 40,000 construction jobs over four years and thousands of tech and manufacturing positions. Governor Hobbs expressed excitement about Arizona becoming a hub for advanced manufacturing, bringing substantial investment and creating high-paying jobs. She noted that the TSMC venture would enhance global technology advancements and strengthen ties between Taiwan and the U.S.