Taiwan pitches chip diplomacy as TSMC invests $265 billion in Arizona

  • Taiwan used SEMICON Taiwan to promote itself as a reliable, democratic semiconductor supplier and international partner.
  • TSMC is investing $265 billion in Arizona, while Taiwanese companies planned an additional $20 billion of U.S. investment.
  • Taiwan's tariff-linked investment agreement with Washington remains uncertain, as the island also deepens ties with the European Union.

Taiwan used the SEMICON Taiwan trade show to present itself as a democratic and reliable semiconductor supplier for the artificial-intelligence industry and a partner willing to share its chip expertise with like-minded countries. The effort comes as the United States, Taiwan's most important international backer and arms supplier, presses Taiwanese companies to expand manufacturing there. TSMC is investing $265 billion in Arizona factories, while Economy Minister Kung Ming-hsin said Taiwanese companies planned an additional $20 billion of U.S. investment. Taiwan reached a tariff-linked investment agreement with Washington earlier this year in exchange for reduced export tariffs, but uncertainty remains after U.S. Commerce Secretary Howard Lutnick said semiconductor tariffs were coming for companies that do not manufacture in the United States. Taiwan is also pursuing closer semiconductor and economic ties with the European Union, which sent European Commission official Kilian Gross to promote Chips Act 2.0 at the show.

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