Arizona State Legislative Leaders Visit DSET to Discuss Taiwan-U.S. Challenges in UAVs, Cybersecurity, Semiconductors, and Energy

On September 10, a bipartisan delegation from the Arizona State Legislature visited the Research Institute for Democracy, Society and Emerging Technology (DSET) to engage in discussions on key issues including drones, cybersecurity, semiconductor supply chains, and energy security.

In his welcoming remarks, DSET CEO Dr. Jeremy Chih-Cheng Chang highlighted the strong supply chain ties between Taiwan and Arizona, extending beyond the well-known TSMC investment. He noted that Taiwan’s drone industry alliance had signed an MoU with Arizona—one of only two U.S. state governments to do so—and emphasized the growing need for exchanges on energy policy as both sides confront the challenges of semiconductor industry expansion. Dr. Chang expressed DSET’s gratitude for the delegation’s visit and its hope to deepen cooperation across multiple domains.

During the exchange, the delegation raised questions on drones, energy, semiconductors, and disinformation. Arizona legislators explained that their state legislature has held extensive debates on supply chain risks tied to China in sectors such as semiconductors, 5G, and drones, prompting broad questions to DSET’s research team.

On semiconductors, lawmakers focused on DSET’s research regarding Huawei’s shadow supply chain. Dr. Chang stressed that Beijing subsidizes “national champion” firms such as Huawei and DJI to dump underpriced products in global markets—undermining fair competition and creating security risks. In addition to cybersecurity threats, DSET underscored the industrial risks posed by China’s subsidies in mature-node semiconductor production.

On drone cooperation, visiting legislators shared their experience debating a state-level bill in 2024 that aimed to ban Chinese-made drones. They explained the dilemma faced by state governments: while Washington has flagged security concerns, local governments lack the capacity to independently verify risks, and Chinese drones remain widely used by police and agricultural agencies due to their low cost and strong performance. Legislators expressed interest in Taiwan’s policy approaches and the development of its drone supply chain.

DSET’s National Security team noted that Taiwan’s drone exports to the U.S. have grown significantly, with thousands of units shipped in recent months at competitive prices of USD 500–800, showing the sector’s growing ability to compete with Chinese products. However, current cooperation remains limited to select state-level purchases, with no federal-level procurement to date. DSET urged state legislatures to advance procurement cooperation and called for federal regulations that support deeper Taiwan–U.S. drone supply chain integration.

On energy, Sen. Tim Dunn shared Arizona’s experience in solar and natural gas and inquired about Taiwan’s strategies to strengthen grid resilience while advancing renewables. Rep. Walt Blackman expressed concerns about the influence of TikTok and Xiaohongshu among U.S. youth, asking how Taiwan builds resilience against disinformation without bans. Sen. Frank Carroll focused on semiconductor cooperation, raising questions about DSET’s assessment of the U.S. CHIPS Act and challenges facing TSMC’s Arizona fabs, particularly labor training and supply chain security.

DSET researchers responded by outlining Taiwan’s initiatives in drone self-sufficiency, energy transition, and information warfare defense. Both sides agreed that democracies must reduce reliance on China in critical technology and energy sectors, with state governments and legislatures playing a vital role in driving industrial transformation and security standards. They also underscored the importance of joint efforts in countering disinformation and information warfare.

The delegation was led by Rep. Tony Rivero, Chair of the House International Trade Committee, and included Sen. Frank Carroll, Senate Majority Whip; Sen. Tim Dunn, Vice Chair of the Senate Natural Resources Committee; Rep. Lupe Diaz, Chair of the House Land, Agriculture, and Rural Affairs Committee; Rep. Walt Blackman, Chair of the House Government Committee; Rep. Kevin Volk, Member of the House Appropriations Committee; and Rep. Lydia Hernandez, Member of the House Education Committee. The delegation was accompanied by Alan Fang, Director of the Political Division, Taipei Economic and Cultural Office in Los Angeles.