Ducey travels to Taiwan, Korea on trade mission as Arizona grows its semiconductor industry
Gov. Doug Ducey arrived in Taiwan on Tuesday morning, as part of a five-day trip that will include a stay in the Republic of Korea focused on growing Arizona's semiconductor industry.
Ducey will meet with Taiwan President Tsai Ing-wen and leaders of high-tech manufacturing companies. He also will deliver a keynote address to a group of American and Taiwanese business leaders.
In 2021, trade between Arizona and Taiwan totaled $1.92 billion.
Arizona’s largest ever foreign direct investment, the Taiwan Semiconductor Manufacturing Co. plant, is under construction in north Phoenix, near Loop 303 and Interstate 17. The first phase of development represents a $12 billion investment from TSMC.
Ducey was expected to facilitate the signing of an agreement between the Taiwan Ministry of Education and the Arizona Board of Regents to promote collaboration in higher education and workforce training.
The governor's plans also include meeting Taiwan Minister of Foreign Affairs Joseph Wu Jau-shieh and U.S. Ambassador Philip Seth Goldberg.
Relationship building
The trip comes less than a month after President Joe Biden signed the CHIPS and Science Act, which provides up to $52 billion to help grow the country’s production of semiconductors and related technologies as the world faces a global shortage.
“Arizona has excellent relationships with Taiwan and the Republic of Korea,” Ducey said in a statement. “The goal of this trade mission is to take these relationships to the next level — to strengthen them, expand them and ensure they remain mutually beneficial.”
The state’s budget this year included establishing foreign trade offices in Taiwan and Korea, which will launch later this year.
Ducey was accompanied on the trip by Arizona Commerce Authority President and CEO Sandra Watson and Arizona Chamber of Commerce and Industry President Danny Seiden.
TSMC on track for 2024 opening
TSMC bought more than 1,100 acres of land in north Phoenix in 2020 and was constructing the first phase of its plant, called a fab. At the facility, TSMC will manufacture its five-nanometer semiconductor. Once the plant is operational, it will be the country's most advanced chip manufacturing process, according to TSMC.
The fab was scheduled to open in 2024 but TSMC has already begun hiring and training employees. As of June, the company had 500 employees for the Arizona facility training in Taiwan, and 100 employees working in Arizona. The company expects to have more than 2,000 employees in Arizona by 2023.
Along with TSMC, a slew of supplier companies has announced plans to locate or expand in the Valley and in Pinal County to service TSMC. Those include both international and U.S.-based companies that have either entered the U.S. market because of TSMC or expanded operations in the country.
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Supplier companies opening nearby
Taiwan-based Sunlit Chemical, a manufacturer of hydrofluoric acid, sodium fluoride, ammonium fluoride, phosphoric acid, hydrogen fluoride and other chemicals used in the manufacturing of semiconductors, began construction in January on its $100 million, two-phase plant. The first phase was expected to open next year, with the second phase expected to open in 2024. The plant is located near Deer Valley Airport, in an area that was designated by Phoenix as a “supplier site” for TSMC.
Taiwan Puritic Corp., a manufacturer and distributor of semiconductor components and products, has signed leases in both Phoenix and Glendale, which marks the company’s entry into the U.S. market, according to TSMC officials.
Kokusai Semiconductor Equipment Corp., which provides processing systems for wafer manufacturing, has chosen a location in Glendale for spare parts distribution, training and office space.
In Surprise, U.S.-based Rinchem, a chemical and gas storage and distribution company used by the semiconductor industry, is under construction on a 145,000-square-foot warehouse, which was scheduled to be completed in June 2023. The company bought 21 acres near Dysart Road and Sweetwater Avenue for $4.2 million, according to real estate database Vizzda.
Pinal County seeing growth for international companies
Taiwan-based and other international suppliers have also flocked to Pinal County, congregating in Casa Grande.
LCY Electronic Materials Inc., a Taiwan-based producer of chemicals used in the production of semiconductors, including electronic-grade isopropyl alcohol, bought land near Burris Road and Gila Bend Highway, according to Vizzda. LCY plans to develop a $100 million manufacturing plant to service five-nanometer production of semiconductors, the company announced.
Taiwan-based Chang Chun Group bought 84 acres of land near Clayton and Burris roads, according to Vizzda. According to documents from of Casa Grande, the company was planning to build a 540,000-square-foot facility and plans to hire 209 people. The total capital investment from Chan Chun is expected to be about $400 million.
Jing He Science, a Taiwan-based industrial gas company that supplies to the semiconductor industry, bought 20 acres near Burris and Peters roads for $1.6 million.
Taiwan-based Kanto-PPC, a supplier of electronic-grade chemicals used in semiconductor production also bought 81 acres of land near Burris Road and Ash Avenue in Casa Grande.
Solvay, a Belgium-based supplier of electronic-grade hydrogen peroxide, also bought 26 acres in Casa Grande. The company announced it would develop a new facility to service the U.S. semiconductor manufacturing market. The facility was expected to create 30 full-time jobs.
Reach the reporter at cvanek@arizonarepublic.com. Follow her on Twitter @CorinaVanek.
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This article originally appeared on Arizona Republic: Ducey travels to Taiwan, Korea to promote semiconductor industry
