TAIPEI (TVBS News) — Arizona signed a startup cooperation agreement with Taiwan on Wednesday (June 3), as the U.S. state seeks to position itself as a gateway for Taiwanese entrepreneurs. The deal comes amid intensifying competition among foreign delegations courting Taiwan's tech sector at this year's Computex.
The memorandum of understanding, signed at the InnoVEX startup exhibition, formalizes cooperation between the Arizona Commerce Authority (ACA) and Taiwan's Small and Medium Enterprise and Startup Administration (中小及新創企業署), known as SMEA. The agreement focuses on two priorities: supporting startups through ecosystem collaboration, and helping small and medium enterprises from both sides expand into each other's markets.
"Today, Arizona has emerged as one of the most exciting economic development chapters in our history," Sandra Watson, president and CEO of the Arizona Commerce Authority, said during a keynote address at the forum. "Arizona's growth story doesn't stop at semiconductors. We've also welcomed billions in investment in aerospace and defense, batteries, data centers, and clean tech."
Since 2020, Arizona has attracted more than US$195 billion (NT$6.14 trillion) in foreign direct investment, according to Watson. The state leads the United States in semiconductor and computer equipment exports, a position cemented by TSMC's (台積電) US$165 billion investment in advanced chip manufacturing facilities near Phoenix.
The state is also pitching its workforce. Arizona's three major universities produce over 43,000 engineers, with Arizona State University alone enrolling more than 33,000 engineering students, Watson noted. "We have a wonderful and abundant workforce talent pipeline in Arizona," she said. "In addition to that, we have great modern infrastructure... we have an incredibly reliable grid structure as well as modern infrastructure to really support the advancement of growing companies."
GJ Lee (李冠志), director general of Taiwan's SMEA, said the partnership reflects the complementary strengths of both sides. "Taiwan is very focused on advanced manufacturing, on R&D, and also with breakthrough state-of-the-art technologies in AI and semiconductors," Lee told TVBS World Taiwan. "Arizona is also a very good test market."
Lee pushed back against concerns that overseas investment represents a "hollowing out" of Taiwan's economy. He characterized the collaboration as "ecosystem-to-ecosystem," noting that Taiwanese SMEs could form clusters in Arizona to support TSMC's manufacturing operations while also accessing broader U.S. markets.
The Arizona delegation's visit comes as multiple countries compete for Taiwan's attention at Computex, Asia's largest tech trade show. Delegations from France, Israel, and more than 20 other nations are participating in this year's InnoVEX exhibition, which organizers say has drawn nearly 500 exhibitors — a 10-year high.
Watson's Computex appearance caps a weeklong Taiwan tour. On May 31, she led a delegation to the Startup Terrace Kaohsiung (亞灣新創園), where officials discussed AI infrastructure and startup incubation programs. The visit underscored Arizona's deepening ties with Taiwan — a relationship Watson described as having been "so closely" cultivated "for so many, many years."
Wednesday's agreement builds on a separate MOU signed in April between the Arizona Commerce Authority and the Taiwan AI Grand Alliance (台灣AI大聯盟). That deal, witnessed by TAITRA (外貿協會) Chairman James Huang (黃志芳), focused on cross-border investment, talent cultivation, and using Arizona as a pilot base for Taiwanese AI technologies.
For Taiwanese founders weighing a U.S. expansion, Watson offered a direct pitch: Arizona provides lower costs, fewer regulatory hurdles , and proximity to major markets.
"Our neighbor to the west, California — it's an incredible market," Watson said. "They are considered the fourth-largest economy in the world, and the proximity to that market is very, very helpful for businesses as they look to grow and expand."
Whether that pitch resonates depends on what Taiwan's entrepreneurs hear when they sit down with Arizona's team this week. The state will need to distinguish itself from a growing crowd of suitors. ◼ (At time of reporting, US$1 equals approximately NT$31.48)