
Six more state offices have opened in the past year.
One year ago, Taiwan Business TOPICS reported on the mounting interest in the Taiwan market by U.S. state governments seeking job-creating investment and trade opportunities. Between 2020 and the end of last year, the number of American states operating offices in Taiwan rose from just six to a total of 18. The new arrivals during that period were Arizona, Guam (a U.S. territory that in this context is treated as a state), Minnesota, Montana, New Mexico, North Carolina, Pennsylvania, South Carolina, Virginia, Washington, and West Virginia.
Since then, the influx has continued unabated. During 2024, six more states have opened offices, either directly or by appointing local consultants as representatives: Indiana, Michigan, New Jersey, New York, Ohio, and Texas. That brings the current total to 24 – and several additional states are known to be actively exploring the possibility of following suit.
What’s been behind the surge? A key factor is the growing recognition that Taiwanese companies, who for both economic and geopolitical reasons have been looking to lessen their reliance on the Chinese market, are prime prospects for foreign direct investment (FDI) in the United States. Taiwan Semiconductor Manufacturing Company’s massive project in Arizona – a US$65 billion complex that has been called the largest greenfield foreign investment in U.S. history – was an eye-opener in many state capitals.
However, it is not only the relatively few giant corporations in Taiwan that are the target of state interest. In most years, the Taiwanese delegation to the SelectUSA Investment Summit in Washington, D.C., has been the largest international contingent, made up largely of small and medium-sized enterprises that are looking at the feasibility of investment projects in the United States. Those smaller firms often need to go through a complex and drawn-out decision-making process before undertaking such projects, and state governments realize that having a representative on the ground in Taiwan to work with them can increase their chances of being the chosen location.
At the same time, the friction in the U.S.-China relationship in recent years has increased Taiwan’s relative attractiveness as the site of a trade office. Some states have even used the Taiwan office as a base from which to serve other markets in the Asia Pacific region.
The six new state offices this year have identified the following as their main areas of interest:
Indiana: The state is seeking to “attract robust supply chains” to invest in such industries as microchips, AI, and agricultural biotechnology, as well as to promote collaboration among universities and research institutions. Taiwanese chip designer MediaTek established an R&D center at Indiana’s Purdue University last year.
Michigan: Governor Gretchen Whitmer, who visited Taipei last March to announce the opening of the office, has directed that Michigan prioritize attracting investment from Taiwan in four key sectors: mobility (including electric vehicle and other automotive parts), semiconductors, green technology, and aerospace/defense. The office will also support bilateral trade.
New Jersey: The Taipei-based APAC Center covers Taiwan, Japan, China, and South Korea, focusing on attracting FDI in the life sciences, logistics, clean energy, food and beverages, advanced manufacturing, and technology, as well as fostering connections in higher education.
New York: Idaho-based memory-chip manufacturer Micron, one of the largest foreign investors in Taiwan, has announced plans for a US$100 billion “megafab” near Syracuse, New York. Taiwanese suppliers to the semiconductor industry will be a major focus for investment solicitation. Other sectors include renewable energy (both offshore wind and solar) and biotech. New York is also a potential source for financial and other business services.
Ohio: FDI in advanced manufacturing, EVs, aerospace, technology, and healthcare. The state is stressing such attributes as its well-established logistics infrastructure, favorable business climate, and diverse economy.
Texas: The office, which Governor Greg Abbott announced while visiting Taipei last July, is focusing on attracting investment, expanding trade, and promoting collaboration among higher education institutions. The main industry sectors are aerospace, agriculture, biomedical, energy, EVs, and semiconductors.