Taiwan opening Phoenix diplomatic hub as semiconductor industry booms
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As Taiwan's biggest business continues to expand in Phoenix, the country's foreign ministry is establishing a diplomatic presence as well.
Why it matters: Taiwan Semiconductor Manufacturing Co. (TSMC) is transforming the Valley and shows no signs of slowing its growth, and that has spurred an influx of Taiwanese people to Arizona.
Driving the news: The country's Ministry of Foreign Affairs announced earlier this month that it'll open a Taipei Economic and Cultural Office (TECO) in Phoenix.
- A TECO serves as a de facto embassy or consulate.
- The downtown Phoenix office will be the 14th TECO in the U.S.
- There's no opening date scheduled yet, but it'll hopefully happen in a few months, Kevin Chiao, the TECO's director general, told Axios.
State of play: As Taiwanese semiconductor manufacturers and related companies continue their expansion in Phoenix, the city has "progressively developed into a sizable and strategically significant technology industry cluster," the ministry said.
- The city has become a "vital hub" for Taiwan and the U.S. to "jointly build reliable and highly resilient technology industry supply chains."
- The ministry said the Phoenix TECO will bolster ties between the city, Taiwan and the state; provide consular services to Taiwanese nationals and enterprises; and "respond promptly to the investment and operational needs of Taiwan companies."
Catch up quick: TSMC's massive investment in Phoenix has made Taiwan a major player in the Valley.
- The global semiconductor juggernaut has one fully operational fabrication plant in north Phoenix, another that's been completed and will be running next year, and two more under construction.
- The company recently announced it'll spend another $100 billion to expand chip-making capacity in Arizona, bringing its total investment here to $265 billion with plans for a total of 12 semiconductor and advanced packaging facilities.
- TSMC's Phoenix operations have brought a growing Taiwanese community.
Zoom in: The ministry is opening a TECO to meet a growing demand from the local Taiwanese community for consular services, which they'll be able to access now without going to Los Angeles, Chiao told Axios.
- Secondly, it wants to establishment more direct contact with the state and city to "promote further exchanges and cooperations" in areas like investment, trade, technology, education, culture and people-to-people ties.
- The Phoenix TECO will also cover New Mexico.
What they're saying: Given that TSMC is making the largest foreign direct investment in U.S. history, it makes sense that the Taiwanese government would want a presence in Phoenix, Mayor Kate Gallego told Axios.
- "People doing business back and forth need help with everything from personal documents to negotiating international economic development agreements," she said.
- As Arizona continues attracting record levels of Taiwanese investment, the TECO "will play an important role in connecting government, industry, and community partners," Arizona Commerce Authority spokesperson Alyssa Tufts told Axios.
- TCSM Arizona "welcomes all efforts coming on board to support Taiwanese business with local stakeholders to create a thriving environment for collaboration here in Arizona," the company said in a statement to Axios.