TAIPEI (Taiwan News) — Taiwan and Arizona signed a memorandum of understanding (MOU) on Tuesday (Aug. 24) that paves the way for broader cooperation on semiconductors, medical equipment, and advanced manufacturing industries.

A reliable industrial cooperation platform will be built on the foundation of the MOU, as the two sides work to develop the next generation of microelectronics, reported CNA.

Taiwan accounts for over one-fifth of the world’s chipmaking capacity, while Arizona boasts a vibrant and innovative high-tech scene. The collaboration bodes well for both as they seek to secure a strong footing in the global semiconductor market, which is estimated to grow to up to US$589 billion in value by 2025 from US$440 billion in 2020, said Yang Chih-ching (楊志清), deputy director-general of the Industrial Development Bureau (IDB).

Taiwan’s prowess in manufacturing healthcare products has also been underscored by the COVID-19 pandemic, Yang suggested. From masks, hazmat suits, and respirators to smart IoT applications, Taiwan has what it takes to become a relevant industry player in medical devices, he added.

The MOU’s inking comes after Taiwan Semiconductor Manufacturing Company (TSMC) broke ground for a computer chip factory in the U.S. state in June. The semiconductor titan is eyeing as many as six potential plants at the Arizona site in the next 10 to 15 years, according to Reuters.