Phoenix Gets Its First Asia Flight—Starlux Launches Taipei Route Thanks To $165 Billion CHIPS Act Bet

Phoenix is getting its first flight to Asia. Taiwan’s Starlux will launch Phoenix – Taipei service three times weekly with an Airbus A350-900.

Starlux is Taiwan’s third airline. EVA Air is a member of Star Alliance and China Airlines is part of SkyTeam. Starlux isn’t aligned, but it has designs on joining American Airlines-led oneworld.

However it isn’t potential connecting traffic that’s driving the carrier to add service to American’s Phoenix hub, on top of their existing Los Angeles, San Francisco, Seattle, and Ontario flying.

Taiwan Semiconductor Manufacturing Company has a major investment in Phoenix. The company has around $70 billion in annual revenue and a market cap approaching a trillion dollars from producing 90% of the world’s leading-edge chips. They manufacture the most advanced chips for NVIDIA and others.

While they announced a Phoenix project with local and state subsidies in May 2020, the passage of the CHIPS Act and the ensuing $6.6 billion in grants and $5 billion in loans led to a massive expansion of the project. Total capital expenditure could reach $165 billion, which I believe would make it the largest foreign investment in a new project in U.S. history.

There’s a lot more flying between the U.S. and Taiwan than would be expected by passenger volumes alone.

  • There’s a lot of business travel related to chips, AI, and technology.
  • And there’s also a robust cargo business.
  • That leads to a lot of excess seats. The capacity makes sense for premium and cargo traffic, but airlines have extra seats to unload.
  • There are 8 peak daily LA – Taipei flights and 7 peak daily San Francisco – Taipei flights. There are 4 airlines flying Seattle – Taipei and San Francisco Taipei. Seattle – Taipei is one of the only routes where there’s consistent Delta business class award space at not completely insane (albeit still high) prices.

Given flight distance and aircraft, this service will need to operate in the middle of the night during the summer where Phoenix temperatures would otherwise impede the operation.

Starlux isn’t generous with premium cabin award space, but this is another opportunity to use Alaska Airlines miles for transpacific travel and connections over Taipei to other destinations in Asia represent a strong opportunity using this flight.

Ultimately the linkages between the U.S. and Taiwan, while symbolized by air connections, are about chips technology and defense. The U.S. doesn’t want Taiwan’s chip manufacturing to fall under the sphere of influence of China. And Taiwan wants a U.S. shield against Beijing adventurism. The more tourists who experience Starlux, visit Taiwan, and make good use of their miles the more the security interests of both nations are fostered.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. The more tourists who experience Starlux, visit Taiwan

    Starlux might be a nice airline but Taiwan sucks. It would be horrible for that to be a western visitor’s first taste of Asia. Taiwan is very old and I personally found the quality of service more NYC-style matter-of-fact unsmiling, even at the high end Amex FHR hotel I stayed at in Taipei.

    Japan, mainland China and Hong Kong, (and probably Korea, idk never been there) are much better exemplars of Asian hospitality – not to mention modern infrastructure.

    Oh I also wanna say when I went through immigration and customs entering Taipei, some crabby officer was yelling at a poor Filipino family ahead of me about pastries in their bag. That’s the only time I’ve ever seen condescending yelling at an airport outside TSA at EWR.

  2. @Unintimidated I went to Taiwan about 9 years ago on a whim with no expectations and found it a great place as a tourist. I spent 2 weeks circumnavigating the island from Taipei and Jiufen in the north to Taroko National Park and Hualin in the east to Kenting in the south and Kaohsiung and Tainan in the east. I found it to be interesting, pleasant, reasonably priced and delicious. I do not speak any Chinese, yet enjoyed the country and people were pleasant. I stayed at a range of accommodations from the Westin (now closed) to AirBnB to the budget hotel chain, Kindness Hotels. The latter is a hoot, with their free ice cream, bicycles, breakfast, and “midnight snack” (which was Dan Dan noodles and other food at 9pm).

  3. Wishing them the best with this, though I doubt the current administration even cares. It’s a missed opportunity. CHIPS is a good idea.

    @Unintimidated — What a horrible take. Taiwan is amazing, and the ‘free’ people of Taiwan are incredible. It’s worth visiting and defending. It was literally one of the final places I visited before the pandemic. I thoroughly enjoyed my time in Taipei, and highly recommend the Elephant Mountain steps for an epic view of the city. Looking forward to returning someday.

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