The State of Arizona, the City of Kaohsiung in Taiwan, and Kumamoto Prefecture in Japan signed a trilateral Memorandum of Understanding (MOU) on March 12 to strengthen economic collaboration in semiconductors, workforce development, research and development, and supply chain integration. The signing ceremony took place in Phoenix with leaders including Governor Katie Hobbs and Mayor Chen Chi-Mai of Kaohsiung City present. Sandra Watson, President and CEO of the Arizona Commerce Authority, Deputy Mayor Ta-Sheng Lo of Kaohsiung, and Vice Governor Shingi Takeuchi of Kumamoto Prefecture witnessed the event. Governor Takashi Kimura of Kumamoto Prefecture joined virtually.
The agreement is significant as it formalizes cooperation among three regions that are central to the global semiconductor industry. The presence and expansion of TSMC—Taiwan Semiconductor Manufacturing Company—in all three locations underscores their importance as hubs for advanced technology manufacturing.
According to the MOU, key initiatives will include strengthening supply chain integration across Arizona, Kaohsiung, and Kumamoto; advancing research collaborations between universities and industry; promoting academic exchange programs; and organizing joint delegations to deepen partnerships. “This agreement formalizes the framework that will allow our three regions to deepen our partnership, advance innovation, and ensure a resilient and secure semiconductor supply chain for the future,” said Governor Katie Hobbs. “We will create new opportunities for collaboration, economic growth, and technological leadership.”
Sandra Watson said: “Arizona is proud to share deep and growing relationships with both Taiwan and Japan – two of our state’s most important international partners. Today’s agreement reflects the strong interconnectivity between our three economies – forming a global supply chain for the world’s most important technologies.” Mayor Chen Chi-mai added: “TSMC’s chips represent far more than just the world’s most advanced technology; they are symbols of freedom for the democratic world… This partnership will allow us to deepen cooperation in industry, technology, and talent development.” Governor Takashi Kimura said: “We believe that by signing this MOU… we can demonstrate our presence to the world as core hubs for the semiconductor industry… supporting future industries and contributing to the stability and development of the global semiconductor supply chain.”
Arizona has become one of the fastest-growing semiconductor centers globally since 2020 with over $214 billion invested in its semiconductor sector leading to about 25,000 new jobs created through more than 70 industry expansions. Similarly, Kaohsiung has emerged as a major center for advanced manufacturing in Taiwan while Kumamoto Prefecture plays an increasing role in Japan’s semiconductor resurgence.
On September 12, 2022,the Arizona Commerce Authority announced that Arizona’s economic development efforts broke records with a projected creation of 24,186 new jobs during Fiscal Year 2022—151% above its goal—and $10.75 billion invested into local communities.
The trilateral agreement builds on existing ties among these regions’ governments, industries, and academic institutions as they work together on innovation initiatives related to semiconductors.
