China's Los Angeles consulate has written twice to Arizona Governor Katie Hobbs, urging the state to drop political engagement with Taiwan. TSMC's Phoenix expansion has meanwhile climbed to $265 billion — the largest single foreign investment in U.S. history.

KJZZ obtained the letters through a public records request filed with the governor's office. One recommends that Arizona "stops doing any gimmicks that harm the friendship and cooperation between China and the state of Arizona." The other accuses Arizona of "lending credence to Taiwan's independence," a status Beijing does not recognize.

How big is TSMC's Arizona bet?

TSMC, the world's largest contract chipmaker, operates a fabrication campus in North Phoenix and continues to build out additional modules. The company announced in July it would raise its Arizona commitment from $165 billion to $265 billion. State officials call the figure the largest foreign direct investment ever recorded in the United States.

The Arizona fabs produce logic chips for Nvidia, Apple and other U.S. customers. TSMC's Arizona president declined to comment on cross-strait geopolitics when KJZZ visited the site, telling the station that the company located in Phoenix because its customers wanted a U.S. footprint.

The U.S. still depends on Taiwan-fabricated wafers for the most advanced process nodes. TSMC will keep producing leading-edge chips on the island for the foreseeable future, leaving U.S. supply chains exposed to any disruption in the Taiwan Strait.

Why is Taiwan opening a Phoenix office?

Taiwan's Ministry of Foreign Affairs announced this summer it would open a Taipei Economic and Cultural Representative Office in Phoenix. The post becomes the 14th such office in the United States and will provide consular services — passport renewals, document authentication — alongside trade and investment coordination.

Phoenix and Taipei have been sister cities since 1979. Senator Barry Goldwater sued the Carter administration after Washington cut formal diplomatic ties with Taiwan — a legal fight that anchored Arizona's long engagement with Taipei.

The local Taiwanese population has likely grown from roughly 2,800 in recent U.S. census counts to as many as 30,000, a figure Taiwan's president cited last year.

What does Arizona's government say?

A Hobbs spokesperson told KJZZ the state will continue pursuing economic relationships with Taiwan within the broader U.S. foreign policy framework. That framework permits business and arms sales with Taipei while withholding formal diplomatic recognition.

The Arizona Commerce Authority led a 100-person delegation of state and city officials to Taiwan earlier this month — a signal that deal flow continues despite Beijing's pressure.

Will the letters change anything?

The consulate letters echo a federal alert. KJZZ found that three federal departments sent a joint letter to U.S. governors flagging that states could receive messages from China objecting to economic partnerships with Taiwan. Arizona's governor received the Chinese consulate correspondence directly.

Phoenix Committee on Foreign Relations President Lily McElwee called the correspondence unsurprising.

"They very much adhere to Beijing's firm stance that it will do whatever it takes to reduce Taiwan's international space," McElwee said. "We're going to see Beijing react to any development that will enhance awareness of Taiwan and cross-strait relations in Arizona or elsewhere."

One expert who authored a federal report on semiconductor vulnerabilities told KJZZ that cross-strait conflict remains the largest threat to advanced chip supply. U.S. fab capacity in Arizona will reduce that exposure over time but will not eliminate it in the near term.