President Lai Ching-te expressed anticipation for increased semiconductor investments in Arizona to enhance relationships with the US during a meeting with a visiting senator from the state.
US President Donald Trump has urged a leading semiconductor manufacturer, known for its significant trade surplus with the US, to increase its investment in the US, particularly focusing on the development of AI-driven chip technology.
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TSMC, the leading global manufacturer of semiconductor chips and a key player in the advancement of artificial intelligence technology, has committed to a significant investment of $165 billion in the establishment of manufacturing facilities in Phoenix, Arizona. During a meeting with Democratic Senator Ruben Gallego of Arizona, Lai highlighted TSMC's investment in the state as a significant outcome of collaboration between Taiwan and the US industries.
The previous week witnessed an agreement between Taiwan and the US to reduce American tariffs on Taiwanese exports from 20 percent to 15 percent. Taiwanese companies are set to make an investment of $250 billion to enhance the production of semiconductors, energy, and artificial intelligence in the US.
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Additionally, Taiwan has pledged an additional $250 billion in credit to streamline and support further investment opportunities.
“The amount of investment that is happening in Arizona right now from Taiwanese firms, especially TSMC, is impressive," he told Lai. “We are the envy of other states and we want to continue to see that growth”.
Gallego is the initial American legislator or government representative that Lai has encountered face-to-face subsequent to the formal agreement being finalized. The US plays a crucial role as the primary supporter and provider of arms to Taiwan, which is claimed by China, even though the two countries do not have formal diplomatic relations.
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TSMC is constructing six state-of-the-art wafer manufacturing fabrication facilities, two advanced packaging fabrication facilities, and an R&D center as a component of its investment in the US. The company disclosed earnings of $31.7 billion for the specified period, in addition to a nearly 61 percent surge in annual profits, reaching an all-time high and surpassing projections.
US President Donald Trump has issued a warning of imposing significant ‘reciprocal tariffs’ of 32 percent on imports from Taiwan. Despite this threat, Taiwan is engaged in ongoing trade negotiations with the United States, as reported by local media outlets. Trump also mentioned the possibility of imposing further tariffs on semiconductor products earlier in the month.