Arizona Governor Doug Ducey arrived in Taiwan on Tuesday for a visit focused on semiconductors, the chips used in the island’s electronics production.
Ducey is on a mission to attract suppliers for Taiwan Semiconductor Manufacturing Corp.’s (TSMC) new $12 billion plant being built in the state. The governor is traveling with the president of the Arizona Chamber of Commerce and the head of the state’s economic development agency.
Ducey is scheduled to meet with Taiwanese President Tsai Ing-wen, business leaders and university representatives from the semiconductor industry, Taiwan’s Foreign Ministry said in a statement.
US states are racing to attract a multi-billion dollar wave of investment in semiconductor factories as the US government ramps up spending on expanding the country’s semiconductor industry with a recently passed law. Last week, the governor of Indiana visited Taiwan for a similar purpose.
US officials worry that the country is too reliant on Taiwan and other Asian suppliers for chips used in smartphones, medical devices, cars and most other electronic devices.
Those concerns have been compounded by tensions with China over technology and security. The potential for disruption was highlighted by chip shortages due to the coronavirus pandemic that sent shockwaves through the auto and electronics industries.
Taiwan produces more than half of the world’s supply of high-end processor chips.
Taiwan’s Defense Ministry said on August 4 that China launched at least 11 ballistic missiles in waters near the independent island. The launches came amid Beijing’s largest military exercises in Taiwanese space that include major live-fire drills.
It was seen as a show of force following US House Speaker Nancy Pelosi’s visit to territory China considers its own.
A law passed by Congress on July 29 promises more than $52 billion in grants and other aid to develop America’s semiconductor industry and a 25% tax credit for investors in the nation’s chip factories. North American.
State governments are now promising tax breaks and subsidies to lure chip factories they hope will become hubs for high-tech industry.
Intel Corp., the only major US producer, announced plans in March 2021 to build two chip factories in Arizona at a cost of $20 billion. The company has had another facility in Arizona since 1980.
In January, Intel announced plans to invest $20 billion in a chip factory in Ohio.
Taiwan-based TSMC, which makes chips for Apple Inc. and other customers, announced plans last year to invest $3.5 billion in its second US manufacturing site in North Phoenix, Arizona.
TSMC’s first semiconductor manufacturing facility in the United States is located in Camas, Washington state. It also operates design centers in San Jose, California, and Austin, Texas.
South Korea’s Samsung Electronics says it will break ground in 2024 on a $17 billion chip factory near Austin, Texas. The state says it is the largest single investment to date in Texas.
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