Taipei, Jan. 15 (CNA) Taiwan and the U.S. city of Phoenix on Thursday signed a memorandum of understanding (MOU) aimed at expanding cooperation on startup-driven innovation in semiconductors and AI-powered applications.

Speaking at the signing ceremony in Taipei, Phoenix Mayor Kate Gallego highlighted her background in business administration, saying it ensures she is able to support the growth of Taiwanese startups in her city.

"We'll help you grow your business," she said.

"You'll also, thanks to Taiwan Semiconductor Manufacturing Co. (TSMC) Arizona, have access to great Taiwanese food, Taiwanese banks, doctors who speak Mandarin," she said. "It can be all the comforts of home but access to the markets of the United States."

Gallego cited JelloX Biotech Inc., a Taiwanese startup specializing in 3D digital pathology imaging and AI analysis platforms, as an example of successful operations in Phoenix.

Its technologies can be applied in a range of settings, including improving the efficiency of colon cancer detection, she said.

According to Gallego, JelloX has begun operations at the Mayo Clinic Hospital in Phoenix, which offers a well-developed accelerator program.
The agreement, titled the Taiwan-Phoenix Strategic Technology Partnership, was signed by Startup Island Taiwan (SIT), the Industrial Technology Research Institute (ITRI), the city of Phoenix, the Greater Phoenix Economic Council (GPEC), and Tesoro VC.
According to SIT, the MOU aims to help U.S. startups connect with Taiwan's semiconductor research and development and manufacturing ecosystem, while supporting Taiwanese startups in using Phoenix as a foothold and launchpad to enter the U.S. market.
It also seeks to encourage startups from both sides to participate in accelerators, incubators and soft-landing programs. SIT is a public-private partnership between the Taiwanese government and a group of startups aimed at helping Taiwanese startups boost their international presence.
The initiative will focus on AI, semiconductors and advanced packaging, physical AI intelligent systems, advanced manufacturing, photonics, dual-use technologies, and AI-enabled healthcare applications, SIT said.
The new MOU builds on an earlier agreement signed in 2023 between SIT and GPEC, which focused on facilitating information exchanges on industry and investment projects, organizing joint business missions, promoting soft-landing opportunities for Taiwanese startups, and advancing joint initiatives.
Targeted fields under that agreement included cybersecurity, green energy technology, 5G, information and communications technology (ICT), and semiconductors.

National Development Council Deputy Minister Jan Fang-guan (詹方冠) said the successful expansion of several Taiwanese startups in Phoenix since 2024 demonstrates that "combining Taiwan's R&D power with Phoenix's market and clinical environment is a win-win strategy."

Phoenix is home to two TSMC wafer fabrication plants, with four more planned under a US$165 billion investment package -- the largest single foreign direct investment in U.S. history.