Arizona bets all its chips on Taiwan tech business as dealmakers get set for woo tour

The delegation aims to showcase the opportunities for investment in Phoenix and Arizona statewide.

PUBLISHED JUL 23, 2024

Taiwan's semiconductor industry is a cornerstone of the global technology ecosystem, driven by leading companies like TSMC, UMC, and MediaTek.

Phoenix, Arizona: Leaders from the City of Phoenix, Arizona Commerce Authority (ACA) and Greater Phoenix Economic Council (GPEC) are to head out to Taiwan to meet with the top companies in the region. The delegation, which includes top business executives, aims to showcase the many opportunities for investment and growth in Phoenix and Arizona statewide.

Intel, which has had a presence in Arizona for decades (pictured above is its Ocotillo Campus), has announced a $20 billion expansion project to build two new semiconductor factories in Chandler.

"We have already seen the powerful impact foreign direct investment can have on a city. In the last two years, nearly 20 Asian companies have chosen Phoenix to plant their flag," said Phoenix Community and Economic Development Director Christine Mackay. "We are eager to showcase, once again, the numerous advantages to Taiwanese companies to explore Phoenix as their next partnership opportunity."

"We are excited to welcome the delegation from Phoenix and discuss the many prospects for collaboration between our two regions," said a spokesperson from the Taiwan External Trade Development Council. "We are confident that this trip will lead to fruitful connections and further strengthen the economic ties between Taiwan and Arizona."

The delegation will meet with companies across various industries, such as technology, healthcare, and manufacturing. The trip includes stops at the Taiwan Semiconductor Manufacturing Company (TSMC) headquarters, and tours of the Hsinchu Science Park in Hsinchu, and Nangang Trade and Economic Park in Taipei, Taiwan. Mack Real Estate Group (MREG) and McCourt Partners joined the delegation after recently acquiring the rights to develop the Sonoran Oasis Science and Technology Park, a 2300-acre site adjacent to TSMC in Phoenix.

While a majority of chips are still made in South Korea, Taiwan and China, there is shift to other markets, primarily the US.

"Over the last decade, the work of Greater Phoenix leaders to travel to Taiwan, meet with leaders and executives, and create an advantageous operating ecosystem in Arizona has garnered momentum that has allowed for continued, productive conversations today and led to more than $65.4 billion in investment from 19 Taiwanese company expansions,” said GPEC President & CEO Chris Camacho.

“This paves the way for opportunity at the 2,300-acre Sonoran Oasis Science and Technology Park to create the largest new industrial corridor built adjacent to one of the most significant FDI projects in the country.”

Fab 21 under construction in Phoenix, Arizona in November 2023.

“Through close collaboration, Arizona and Taiwan have built a globally significant partnership across high-tech sectors, leading to an unprecedented surge in jobs and investment,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We look forward to joining our partners in Taiwan to further these ties and bring more opportunity to Arizona.”

Who are the key players in the Taiwan semiconductor sector?

TSMC (Taiwan Semiconductor Manufacturing Company)

TSMC is the largest semiconductor foundry in the world, commanding over 50% of the global market share. In 2023, TSMC reported revenues of approximately $75 billion.

UMC (United Microelectronics Corporation)

UMC is a major foundry in Taiwan, holding a significant share of the global foundry market, though considerably smaller than TSMC. UMC's annual revenue was around $7 billion in 2023.

MediaTek

MediaTek is a leading fabless semiconductor company, known for its system-on-chip (SoC) products used in smartphones, tablets, and other electronic devices. MediaTek generated revenues of about $17 billion in 2023.