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.

  4. Not a shock that one leftist CCP sycophant hates Taiwan and loves mainland china. Mainland china the model of asian hospitality, seriously what a horrible take. And Korea is better, but you’ve never been there…uh, ok, so maybe sit this one out?

    Then theres the other leftist, who is sad from not commenting first as usual, who would have been talking about how much this was created by outstanding leadership and vision if it happened under Biden admin. Sharp as a tack, as usual.

    Gary of course this had a lot to do with AA connecting traffic, and generally just cozing up to AA to get into OW. This wouldn’t be happening without it. It’s not only about Taiwan semiconductor. Both factors can be important, no?

  5. This is not Phoenix’s first direct flight to Asia. HP operated a short-lived service to Nagoya, Japan in the late 1980s on 747-200s. The route flopped but it gave PHX its first nonstop to Asia.

  6. I’ve flown through TPE many times on EVA. It is a reasonable airport and EVA is a nice airline with fairly comfortable seats in coach and with good cabin crews and good food. I have only went into Taipei one time and that was on a bus during a long layover. My observations were that a lot of the city was like parts of Los Angeles – fairly modern but not excessively so. I have also had Taiwanese- American friends at work and went to the wedding of one near Los Angeles. From my experience I have found most Taiwanese people friendly, but like grouping many people together, I am sure that there are some that are not that way. Also, people can reflect the attitudes of the people that they are dealing with so that could be a reason for finding other people less friendly.

  7. @Unintimidated Taiwan definitely doesn’t suck. It is a fascinating place of extreme beauty – an underrated aspect of Taiwan – and an interesting society that maintains many of the Chinese cultural elements that were greatly diminished in China by the Cultural Revolution (Penang is also excellent for this). I think it’s also interesting to travel to Taiwan to see how distinct it is from the rest of China, having many aspects that make it seem quite a lot more like Japan than anyplace in China. I will allow that I don’t think the food is quite as good as many places on the mainland, but nobody should miss an opportunity to visit Taipei.

  8. Also, people can reflect the attitudes of the people that they are dealing with so that could be a reason for finding other people less friendly.

    No excuses please – a friendly person is friendly, full stop.

    The classic corollary is that if your date or coworker is nice to you, but not to the waiter, then your date or coworker is not a nice person.

  9. @ Unintimidated

    Your comments have been fair. As a Taiwanese, I have been living in U.S., Canada, Mainland China and Taiwan for many years. I agree with you that Taiwan would not be an ideal first place to visit in Asia. Buildings are old and most of small towns are old and indistinguishable from one another. So most of Taiwanese would just go travelling abroad (and cheaper too) whenever they have money and time rather than travel within the island.
    As hospitality wise, I would have to disagree with you since I generally found that Taiwanese have been friendly, especially to foreigners, as Taiwanese have adopted Japanese style of hospitality rather than New York type.

  10. @Unintimidated
    Your comments have been fair. As a Taiwanese, I have been living in U.S., Canada, Mainland China and Taiwan for many years. I agree with you that Taiwan would not be an ideal first place to visit in Asia. Buildings are old and most of small towns are old and
    indistinguishable from one another. So most of Taiwanese would just go travelling abroad (and cheaper too) whenever they have money and time rather than travel within the island.
    As hospitality wise, I would have to disagree with you since I generally found that Taiwanese have been friendly, especially to foreigners, as Taiwanese have adopted Japanese style of hospitality rather than
    New York type.

  11. Why would Phoenix summers impede daytime operations for this flight more than other flights?

  12. Fortunately for Starlux, it is entirely standard and feasible to do a redeye return trip, whereby the flight leaves TPE around midnight, lands around 9pm, then departs around midnight for a 5-6am arrival. That kind of flights make up a lot of LAX’s midnight international departures anyways.

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