In 2020, Taiwan Semiconductor Manufacturing Co. (TSMC) chose Phoenix, Arizona, for its first advanced U.S. semiconductor manufacturing site — an investment that has expanded from $12 billion to $165 billion.
Photo courtesy of Taiwan Semiconductor Manufacturing Co.
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The U.S. Department of Commerce last Thursday announced that the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States had signed a historic trade deal “that will drive a massive reshoring of America’s semiconductor sector.” In addition to an easing of tariffs, the agreement contains these three planks:
- Direct Investments: “Taiwanese semiconductor and technology enterprises will make new, direct investments totaling at least $250 billion to build and expand advanced semiconductor, energy, and artificial intelligence production and innovation capacity in the United States.”
- Additional Investments: “Taiwan will provide credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises, supporting the establishment and expansion of the full semiconductor supply chain and ecosystem in the United States.”
- Industrial Clusters: “The United States and Taiwan will establish world-class industrial parks in the United States to strengthen America’s industrial infrastructure and position the United States as the global center for next-generation technology, advanced manufacturing and innovation.”
No additional details were offered on where those industrial parks might be located, though it might be said TSMC-related investment in the Phoenix region already constitutes one.
Nearly simultaneous with the Commerce Department’s announcement came news from the office of outgoing Virginia Gov. Glenn Youngkin that, via a newly signed MOU, the Taiwan Eastbound Alliance-Landing America (TEALA) will construct its first U.S.-based business center at a to-be-determined location in the Commonwealth in order to support Taiwanese businesses and serve as a soft landing site as they scale up operations and secure permanent facilities.
“With its strong momentum in semiconductors, AI and biotechnology, Virginia is emerging as a key gateway connecting Taiwan’s technology ecosystem with the U.S. East Coast,” said TEALA Secretary General Allen Cheng. “The Alliance will actively advance concrete collaboration with Taiwanese industry partners.”
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