Taiwan-U.S. Innovation Link Strengthened: Startup Island TAIWAN Partners with the City of Phoenix to Deepen Cross-Border Collaboration in AI, Semiconductors, and Health Tech Startups

TAIPEI, Jan. 16, 2026 /PRNewswire/ -- To accelerate the co-development of Taiwan–U.S. startup ecosystems in artificial intelligence (AI), semiconductors, and advanced technologies, Startup Island TAIWAN, the national startup brand guided by Taiwan's National Development Council (NDC), today announced the signing of a Memorandum of Understanding (MOU) with the City of Phoenix, the Greater Phoenix Economic Council (GPEC), and Tesoro Venture Capital, in collaboration with the Industrial Technology Research Institute (ITRI).

Building on TSMC's expansion in Phoenix, the partnership aims to integrate Taiwan's technological and industrial strengths with Phoenix's robust industrial cluster to establish a long-term innovation collaboration framework.

The MOU signing ceremony was jointly witnessed by the National Development Council, the Small and Medium Enterprise and Startup Administration (SMESA) of the Ministry of Economic Affairs, and the American Institute in Taiwan (AIT), marking an upgrade of prior project-based cooperations and further promoting participation in accelerators, incubators, and soft-landing programs.

From Pilot Projects to Institutionalized Collaboration

During Deputy Minister Jan Fang-Guan emphasized that the signing of this MOU builds upon two years of solid collaboration. He noted that since Startup Island TAIWAN and GPEC established their partnership in 2024, several Taiwanese biomedical teams have successfully entered the Phoenix market, achieving tangible outcomes such as U.S. FDA approvals and completed clinical proof-of-concept (POC) validations.

"These success stories demonstrate the strong complementarity and significant potential of Taiwan–Phoenix cooperation," As the semiconductor industry becomes increasingly integrated with advanced technology applications, this MOU upgrades previous project-based collaboration by incorporating incubation and acceleration resources from partners such as Tesoro Venture Capital. With a focus on startup landing and market-driven development, the partnership aims to further advance soft-landing programs for startups.

Medical Startups Deliver Breakthrough Results in the U.S. Market

As one of the most retirement-friendly cities in the United States, Phoenix is home to world-renowned medical institutions, including Mayo Clinic, and offers a mature and open clinical environment. With support from Startup Island TAIWAN and GPEC, Phoenix has emerged as a key gateway for Taiwanese health-tech startups conducting clinical POCs and expanding into the U.S. market.

Notable success cases include:

JelloX: Leveraging AI-powered 3D pathology imaging technology, JelloX collaborated with Mayo Clinic to complete clinical validation and obtained U.S. FDA clearance, demonstrating strong performance in colorectal polyp diagnosis.

Brain Navi: One of the few Taiwanese teams to receive U.S. FDA approval for a brain surgery robotic system, highlighting Taiwan's global competitiveness in AI-driven medical automation.

Aesop: Its AI-based clinical diagnostic reasoning model has completed POC validation in U.S. healthcare settings, effectively supporting clinical decision-making and workflow optimization.

These cases illustrate the natural complementarity between Phoenix's concentrated medical demand and Taiwan's advanced AI medical technologies—accelerating market validation for Taiwanese startups while delivering ready-to-deploy solutions to U.S. healthcare systems.

Focusing on Key Technologies to Co-Build a Taiwan–U.S. Innovation Ecosystem

Phoenix Mayor Kate Gallego stated that Phoenix is not only a major U.S. semiconductor hub, but also an innovation gateway integrating AI, talent, and capital. She emphasized that Phoenix is well-positioned as a strategic entry point for Taiwanese startups into the U.S. market. With support from Tesoro Venture Capital, corporate partners, local resources such as the Mayo Clinic accelerator, a high quality of life, and direct flights between Taipei and Phoenix, the city offers a comprehensive environment for startups to land and scale rapidly. Mayor Gallego expressed her expectation that the MOU would further amplify the global impact of Taiwanese startups.

GPEC President and CEO Christine Mackay noted that since signing an MOU with Startup Island TAIWAN in 2023, the two sides have established a physical showcase site in Phoenix's biomedical innovation district. By leveraging the U.S. SelectUSA program, the partnership provides Taiwanese startups with pragmatic market-entry mechanisms that support direct sales and accelerated landing.

The American Institute in Taiwan (AIT) also reaffirmed its continued collaboration with GPEC through SelectUSA to support Taiwanese startups and TSMC supply-chain partners expanding into Phoenix. AIT highly recognized Taiwan's outstanding performance across AI, healthcare, semiconductors, manufacturing, drones, and aerospace sectors.

SMESA Director General Kuan-Chih Lee emphasized that SMEs will remain at the core of this collaboration. By integrating Taiwan's talent, technology, and community resources, SMESA will support startups participating in SelectUSA and help build scalable industrial clusters in Phoenix and Arizona—positioning SMEs as a critical foundation for U.S. industrial development and international investment cooperation.

Tesoro Venture Capital Founder Andy Lombard stated that over the next five years, Tesoro plans to cultivate 200–300 startups by integrating large-scale investments in AI and semiconductors. He stressed the importance of aligning industry partners such as TSMC, Cadence, and Amkor with consistent government policy support. Lombard also proposed establishing an executive committee composed of leaders from the signatory organizations to regularly set goals and ensure execution, with a focus on Taiwan–U.S. talent and workforce development to pragmatically translate the MOU into concrete acceleration and governance mechanisms.

Toward Long-Term, Measurable Impact

As Phoenix continues to grow into a major U.S. hub for semiconductors and advanced technologies—with Taiwanese companies and startups playing a critical role—this partnership will focus on AI, semiconductors, advanced manufacturing, photonics, AI healthcare applications, and defense-related industries. Through bilateral exchanges, industrial validation, and investment matchmaking, the collaboration will support Taiwanese startups entering the U.S. market while attracting U.S. teams to engage with Taiwan.

Moving forward, the partners will continue to cultivate internationally competitive technology startups through institutionalized cooperation, transforming innovation partnerships into measurable and replicable economic outcomes and further strengthening the long-term Taiwan–U.S. partnership.

SOURCE Startup Island TAIWAN