Taiwan and Arizona have signed a memorandum of understanding (MOU) for greater industrial cooperation. Taiwan’s Ministry of Economic Affairs and the Greater Phoenix Economic Council finalized the agreement on Tuesday.
The two sides say they will work together on semiconductor development, the production of medical devices, and advanced manufacturing.
Taiwanese semiconductor giant TSMC already has plans to spend US$12 billion building a new fabrication plant in Arizona. The plant, known as a “fab”, is TSMC’s first new US branch in 20 years, and is expected to begin advanced 5-nanometer chip production in 2024.
The two sides will build on the existing resources in Phoenix to establish an industrial cooperation platform. They will also manufacture next-generation microelectronic products, and encourage partners to work together to build the industry there.
Industry organization World Semiconductor Trade Statistics predicts a big rise in the value of the global semiconductor market. The organization says that the market is expected to grow to a value of US$589 billion by 2025. That is an increase of more than a third from the US$440 billion recorded in 2020.
The economics ministry says Tuesday’s memorandum should enhance Arizona and Taiwan’s role in the global semiconductor industry.
Greater Phoenix Economic Council President Chris Camacho says Greater Phoenix and Taiwan “share common economic goals”. He says the memorandum is the result of a “shared vision”, which will bring economic success to both regions.
Phoenix Mayor Kate Gallego says Phoenix and Taipei have enjoyed a “deep relationship” for more than 40 years. She says she is “thrilled” to welcome TSMC to the city.