Hi everyone! This is Cheng Ting-Fang, your #tech Asia host, saying hello from Taipei! Since TSMC announced plans to increase its total US investment to $265bn, Arizona has become the epicenter of industry chatter. The transformation extends beyond chip factories, reshaping the local economy with new shopping centers, restaurants, and housing. Din Tai Fung, a favorite of TSMC chief executive CC Wei, opened its first Greater Phoenix location and plans a second near Intel's Chandler campus. Investors like J&V Energy Technology spent $88mn on land near TSMC's campus, while Kuan Yuan Paper explores tech park opportunities.

While most US firms shift production out of China, SpaceX is going further, auditing suppliers to bar Chinese nationals from facilities producing parts for the company and requiring replacement of Chinese-made equipment from firms like Hikvision.

GIC's Bryan Yeo says Chinese open-weight models from labs like Moonshot and Deep Seek are narrowing the AI gap, cutting global adoption costs. Meanwhile, CXMT's blockbuster listing valued it above Intel, signaling rising Chinese competition in memory chips. A Nikkei survey shows China now leads in 19 of 67 critical categories, up from 18, strengthening in batteries, EVs, and electronics.