When the Arizona Commerce Authority launched its inaugural AI and Semiconductor Global Forum in Phoenix on April 30, Taiwan showed up in force — more than 80 companies and roughly 150 senior executives, the largest international delegation at the event. The turnout underscored how deeply the island's tech industry has become embedded in Arizona's ambitions as a global semiconductor hub.
TSMC's $165 Billion Bet on Arizona
The backdrop to the forum is TSMC's sweeping buildout in the Phoenix area, which has grown from a single $12 billion fab announced in 2020 into a $165 billion commitment — roughly NT$5 trillion — that ranks among the largest foreign manufacturing investments in U.S. history.
Three advanced-process facilities are already in various stages of development: a 4-nanometer plant that entered volume production in late 2024, a 3-nanometer facility on track for 2027, and a 2-nanometer fab targeted for around 2029. TSMC's longer-term plans envision up to six wafer fabs, two advanced packaging facilities, and a dedicated R&D center — a full semiconductor manufacturing cluster planted on American soil.
What Makes Arizona the Top U.S. Semiconductor Hub?
ACA President Sandra Watson told forum attendees that Arizona has attracted more than $195 billion in foreign direct investment since 2020 and now leads the nation in semiconductor and computer equipment exports. She positioned the state as a destination not just for chip manufacturing but for AI infrastructure, data centers, and aerospace and defense sectors, she said, are drawing intensifying investor interest.
Taiwan Opens Trade Center, Signs AI Cooperation Deal in Phoenix
Taiwan External Trade Development Council (TAITRA) Chairman James Huang (黃志芳) led the Taiwanese delegation and used his remarks to frame Arizona as something more than a manufacturing destination. "As AI development accelerates, it must be built on solid semiconductor infrastructure and relationships of mutual trust," he said, adding that the two sides should aim to define the industrial landscape of the next century, not merely co-build factories.
On that note, Huang announced that TAITRA has worked with Taiwan's Ministry of Economic Affairs to formally establish a Taiwan Trade and Investment Service Center in Phoenix, designed to offer one-stop support for Taiwanese companies entering the U.S. market and to strengthen supply-chain resilience between the two sides.
The forum also saw the ACA and Taiwan's AI Alliance sign a memorandum of understanding on cross-border AI innovation and investment cooperation. The MOU identifies four areas of focus: promoting joint cross-border investment; developing internationally oriented talent; connecting with Arizona's leading universities to accelerate the commercialization of research; and using Arizona as a pilot base for validating Taiwanese AI technologies ahead of broader U.S. market expansion.
Can Taiwan Crack the U.S. Biomedical Market?
Perhaps the most telling signal of where Taiwan's U.S. strategy is heading came outside the main forum program. Huang led a delegation visit to a Taiwan AI Biomedical Showcase Center in Phoenix, where 16 Taiwanese companies already have a presence. TAITRA noted that biomedical has become an increasingly important focus for Taiwanese firms investing in the United States — a diversification that suggests the island's ambitions in America extend well beyond the chip supply chain it is best known for.
