Taiwan Wants To Invest In Chip Factory In Arizona

Arizona, an area that the Taiwanese government is interested in building a chip factory. (photo: unsplash)

JAKARTA - An Arizona economic development group said on Tuesday it had struck a deal with Taiwan's economic development officials aimed at making the US state more attractive to Taiwan's semiconductor industry. The world's largest chipmaker is reportedly eyeing a USD 12 billion factory in Phoenix.

The Taiwan-US Office for Promotion of Industrial Cooperation, backed by Taiwan's Ministry of Economic Affairs, signed an agreement with economic development officials in the wider Phoenix area to find ways to bring more of Taiwan's sprawling semiconductor industry to the metro area.

The move comes as Taiwan Semiconductor Manufacturing Co, the world's largest chipmaker and maker of semiconductors for Apple Inc and many others, said it wanted to build a plant in Phoenix.

The Phoenix city council gave city officials the green light to negotiate with the chipmaker in November. However, details of the deal, including possible tax breaks, have not been released. Reuters reported in May TSMC may build as many as six factories in the area, some of which could use its most advanced technology.

The Phoenix area is already home to a major chip factory. Intel Corp, and NXP Semiconductors, and ON Semiconductor Corp also have factories and offices there.

Chris Camacho, chief executive of the Greater Phoenix Economic Council that signed the agreement Tuesday, August 24, said his group is working to find as many suppliers of TSMC and other related companies as possible to the area.

He said about 40 companies are currently evaluating Arizona for possible investments, but declined to name them because of confidentiality agreements.

Camacho said his group is working with schools and local governments in the area to try to ease the relocation process for Taiwanese families moving to the area.

"We have no regrets pursuing being the top global destination for semiconductors and the semiconductor supply chain", he said in an interview.