Arizona opens new trade and investment office in Taiwan’s capital
The state of Arizona has opened a new trade and investment office in Taipei, Taiwan, to further boost economic opportunities between the two regions.
The new office will be part of the ACA and will serve as a platform to increase economic partnerships and foreign direct investment, Gov. Katie Hobbs announced. It will be led by Leland Lai, who previously worked as a market entry and strategy consultant and was the managing director in Asia for the Groupe Speciale Mobile Association.
The state has a long history with the capital of Taiwan, which has been sister cities with Phoenix dating back 44 years, and has been vying to become one of the main semiconductor hubs in the U.S. given its long history in the industry.
Hobbs said in a statement that Arizona wants to grow the partnership with Taipei and strengthen its collaboration in technology, manufacturing, research and development.
This follows a five-year agreement that the state signed in 2021 with Taiwan’s Bureau of Foreign Trade to formalize a partnership to promote economic growth and trade between Arizona and Taiwan and a partnership between the Greater Phoenix Economic Council and Taiwan-USA Industrial Cooperation Promotion Office.
Trade between Arizona and Taiwan has grown by nearly 220% since 2017 and totaled nearly $3.27 billion in 2021, according to the ACA.
Tech components main part of Arizona exports
Taiwan was also listed as one of the top 10 countries for Arizona exports in 2021 with $621 million in exports that year, according to Maricopa Association of Governments. The top countries for Arizona exports in 2021 were Mexico, Canada and China.
The state’s largest category of exports is in semiconductors, electronic components and aerospace products, the ACA said.
The Biden administration has also been working to attract more microchip manufacturing in the U.S. to compete with China through the CHIPS Act, which includes $52 billion in incentives for the domestic semiconductor industry.
The state’s longstanding relationship with Taipei is part of what led to the Taiwan Semiconductor Manufacturing Co. to choose Arizona for its now $40 billion investment in north Phoenix, city leaders have said.
This has also been followed by Taiwan-based suppliers who have expanded in Phoenix, while the semiconductor giant has said it expects 40 suppliers to locate in Arizona, although costs of construction and regulations have been challenging compared to building factories in Taiwan. Hundreds of Taiwanese residents also are moving to the Phoenix area to work at TSMC.
In Arizona, high education institutions like Arizona State University have also been training engineers in the sector, partnering with other North American countries and recently had faculty selected to lead a regional proposal to advance microelectronics development and training in the Southwest.