$100 billion Arizona chips project will break dependence on China, Taiwan’s president says

TAIPEI, Taiwan — 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.

The U.S. does not recognize Taiwan as a country, but is its strongest backer and biggest arms provider.

News about the meeting was released Wednesday by Taiwan’s official Central News Agency.

The project is expected to create 40,000 construction jobs over the next four years and tens of thousands of tech and manufacturing jobs, Hobbs’ office said in a news release sent before the meeting.

“I’m thrilled by Arizona’s emergence as America’s hub for advanced manufacturing, creating hundreds of thousands of good-paying jobs and bringing billions of dollars of investment into our state,” Hobbs said in the release.

CNA quoted Hobbs as saying that the TSMC project would “not only contribute to the global advancement of artificial intelligence and other technologies, but also strengthen bilateral ties.”