Staff Reports
Doug Ducey, the governor of Arizona, flew to Taiwan on Tuesday to meet with Tsai Ing-wen, the president of Taiwan, to talk about a large-scale semiconductor manufacturing agreement.
According to the Associated Press, Arizona will construct a $12 billion Phoenix plant for Taiwan Semiconductor Manufacturing Corp. Last year, TSMC declared that it would invest $3.5 billion in the new American manufacturing.
In March 2021, Intel Corp. declared that it would support two more Arizona semiconductor facilities. Since 1980, the corporation has been producing goods in the state, and it has plans to invest an additional $20 billion in the new facilities.
Despite repeated warnings from China, Governor Ducey and the president and head of business development of the Arizona Chamber of Commerce were the most recent American officials to visit Taiwan. Last week, Indiana Governor Eric Holcomb visited the autonomous island to advance international ties and talk about the processor chip business.
Nearly all electronics, including computers, smartphones, high-tech military systems, medical equipment, and automobiles, depend on semiconductors. According to Reuters, TSMC generated more than 90% of the processor chips used worldwide in December 2021.
Silicon Valley is where the semiconductor business was first developed, but Taiwan currently commands the market. Fast Company claims that in the 1990s, Intel contributed close to 40% of the global CPU chip manufacturing.
Officials in the United States are now giving domestic semiconductor production top priority. Congress enacted a package in July providing the processor chip industry with more than $52 billion in subsidies and other financial assistance. Additionally, the CHIPS Act would grant investors in American manufacturers a 25% tax credit.
To enhance local economies and the nation's technological independence, state officials from all over the country are competing for semiconductor firms to locate in their areas.
Along with the two facilities beginning construction in Arizona, Intel also revealed a $20 billion investment in a chip factory in Ohio.
The construction of a new $17 billion facility in Austin, Texas, was announced by Samsung Electronics.
China started conducting live-fire military manoeuvres off the coast of Taiwan in reaction to House Speaker Nancy Pelosi's earlier visit there in August. According to ABC News, President Tsai Ing-wen instructed the military on Tuesday to maintain calm in the face of persistent threats. Led by the president, "The more provocative enemy soldiers are, the more stable we need to be. We will not allow those on the opposing banks to manufacture a conflict with an inappropriate excuse."
The preceding is a summary of an article that originally appeared on The Blaze.
