TECH NEWS • GENERAL TECH
January 23, 2026 at 07:04 PM UTC

Taiwan Signals Openness to Expanded Arizona Chip Investments to Deepen U.S. Ties

GeokHub

GeokHub

2 min read
Taiwan Signals Openness to Expanded Arizona Chip Investments to Deepen U.S. Ties
TECH NEWS
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TAIPEI | Jan 23 (GeokHub) Taiwan is seeking to further expand semiconductor investment in the U.S. state of Arizona as part of a broader effort to strengthen economic and strategic ties with Washington, President Lai Ching-te said on Friday during talks with a visiting U.S. senator.

Lai made the remarks while meeting Senator Ruben Gallego of Arizona, highlighting Taiwan’s ambition to deepen cooperation with the United States in advanced chip manufacturing, research, and development — particularly in technologies that power artificial intelligence.


TSMC at the Center of U.S.–Taiwan Cooperation

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, is already investing $165 billion in the Phoenix area to build multiple advanced fabrication plants. The facilities are expected to play a critical role in securing U.S. supply chains for cutting-edge AI chips.

Lai described the Arizona investment as one of the most significant outcomes of collaboration between Taiwanese and American industries.

“We look forward to seeing even more semiconductor manufacturing, research, and development facilities established in the greater Phoenix area,” Lai said, adding that such projects would continue to strengthen bilateral relations.


Trade Deal and Investment Commitments

The comments follow a recent trade agreement between Taiwan and the United States under which U.S. tariffs on Taiwanese exports were reduced to 15% from 20%.

As part of the deal:

  • Taiwanese firms committed to $250 billion in new U.S. investments across semiconductors, energy, and artificial intelligence
  • Taiwan will also provide an additional $250 billion in credit guarantees to support further overseas expansion

Gallego is the first U.S. lawmaker to meet Lai in person since the agreement was finalized.


Arizona’s Growing Role in Global Chip Supply

Gallego praised the scale of Taiwanese investment flowing into his home state, noting that Arizona has become a focal point of global semiconductor manufacturing.

“The level of investment we’re seeing in Arizona from Taiwanese companies, especially TSMC, is remarkable,” he said. “Other states are watching closely, and we want that growth to continue.”

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