Green energy developers in Taiwan are expected to make new investments in Phoenix, Arizona, following in the footsteps of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), according to a major business group in the US city.
During a recent three-day business trip to Taiwan, Greater Phoenix Economic Council (GPEC) president and CEO Chris Camacho told the Central News Agency that he and his delegation had met with TSMC executives, as well as with representatives of electric vehicle, battery and energy storage companies, to discuss possible Taiwanese investments in Phoenix.
“TSMC was the catalyst that has now opened the door for dozens of other conversations that we’re having with leading (Taiwanese) companies in electric vehicles and batteries and smart technology,” said Camacho, whose 30-member delegation arrived on July 8 and also included Phoenix Mayor Kate Gallego.
Photo courtesy of the Greater Phoenix Economic Council
TSMC, the world’s largest contract chipmaker, is investing US$40 billion in Phoenix to build two advanced wafer fabs. The first is scheduled to begin mass production of chips on the 4-nanometer process next year, while the other is scheduled to start commercial operations in 2026, producing the 3-nanometer chips that are TSMC’s most advanced technology currently in mass production.
In the interview, Camacho declined to name the other potential Taiwanese investors in his city, citing nondisclosure agreements.
“Because there are quite a few of them we’re working with right now, that will be ready over the next six months,” Camacho said, referring to the investment announcements, which he said would be made in the first quarter of next year.
He touted the development of the electric vehicle (EV) environment in Arizona, saying that the US federal government has provided the state with grants of US$76.50 million to build its EV charging infrastructure.
According to Camacho, there are currently about 20 million EVs on the road in the US, and the figure is expected to top 30 million over the next few years, with Arizona being one of the fastest-growing EV markets in the country.
Taiwanese companies can feed into the electric vehicle supply chain in the US by taking advantage of the Inflation Reduction Act (IRA), which is expected to spur US consumers to use EVs and can create tremendous business opportunities for Taiwanese investors, Camacho said.
“Whether it’s servicing these products from Taiwan, or making manufacturing investments in Arizona, that would make them competitive for the US market, because of the IRA,” he said, referring to the law that was approved last year by US President Joe Biden to take on climate change and consumer costs and to help drive the global clean energy economy.
Taiwan has a strong contract manufacturing capacity in electronics, and soon, non-semiconductor companies are expected to announce investments in Arizona, “which would be really exciting,” Camacho said.
In addition, over the past few years, Phoenix and Taiwan have been in discussions about direct flights, he said. The “top airlines” in Taiwan might have an interest in direct flight services between the two points, he said, expressing the hope that one of the major carriers will launch not only direct commercial passenger flights but also cargo services, to boost bilateral trade and the tourism industry between Taiwan and Arizona.
Commercial air connectivity will allow Arizonans to enjoy attractions in Taiwan such as the convenient high-speed rail system and beautiful beaches, he said, adding that many Taiwanese who travel to Arizona tend to favor tourist attractions like the Grand Canyon.
Meanwhile, the Phoenix delegation, during its recent meeting with TSMC CEO C.C. Wei (魏哲家), promised to provide the chipmaker with whatever assistance it might need to complete its first wafer fab in the US city on schedule.
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