Taiwan’s President William Lai Ching-te said that a Taiwanese semiconductor company’s massive investment in Arizona is the “best model” for the island’s effort to build computer chips supply lines that don’t rely on Chinese producers, in remarks to the state’s visiting Governor Katie Hobbs.
Taiwan’s leading chipmaker TSMC has committed $100 billion to build three chip foundries, an R&D center and two packaging facilities in Arizona, on top of a previous pledge to build $65 billion in three chip foundries in the state, one of which has begun operations.
Lai and TSMC say that the latest mega-investment stemmed from customer demand and not pressure from the administration of President Donald Trump.
Trump previously said that Taiwan had taken away the U.S. chip business and that he wanted it back.
At their Tuesday meeting, Lai said Taiwan and Arizona were working to build a “non-red” supply chain that excluded suppliers from China, which threatens military action to assert its claim over the island.
TSMC has said the development plans in the U.S. would not affect its work in Taiwan, and that the company currently has 10,000 employees researching and developing 1.0 nanometer chips. Taiwan accounts for more than 90% of advanced computer chip production.
