News Summary
Taiwan Semiconductor Manufacturing Company (TSMC) has officially begun construction on its third semiconductor manufacturing facility in north Phoenix, set to create about 6,000 jobs. The new plant will utilize advanced 2 nm process technology and is expected to start production by the end of the decade. TSMC plans to invest an additional $100 billion in the U.S., which could generate 40,000 construction jobs and contribute over $200 billion to Arizona’s economy over the next decade, enhancing domestic semiconductor capabilities.
Phoenix, Arizona – Taiwan Semiconductor Manufacturing Company (TSMC) has officially begun construction on its third semiconductor manufacturing facility located in north Phoenix, an expansion expected to create approximately 6,000 jobs. The groundbreaking event took place on Tuesday near the intersection of 43rd Avenue and Dove Valley Road.
The new manufacturing plant will focus on producing chips using advanced 2 nanometer process technology or more refined techniques. TSMC’s third fab is projected to commence production by the end of the decade, significantly contributing to the growing demand for semiconductor technology in various industries.
This major expansion comes in light of TSMC’s recent commitment to invest an additional $100 billion in the United States, building upon more than $65 billion already spent. This investment is anticipated to generate 40,000 construction jobs over the next four years and is expected to have a direct impact, contributing over $200 billion to various sectors within Arizona over the following decade.
High-ranking officials including U.S. Secretary of Commerce Howard Lutnick participated in the groundbreaking ceremony. He highlighted TSMC’s expansion as integral to the broader initiative aimed at bolstering American manufacturing capabilities. This aligns with ongoing efforts initiated during the Trump administration to attract jobs and companies back to the United States, emphasizing the importance of domestic production in critical sectors.
TSMC, recognized as the world’s largest semiconductor manufacturer, currently produces chips for major technology firms such as Apple, Intel, and Nvidia. Jensen Huang, the CEO of Nvidia, underscored the necessity of producing chips related to artificial intelligence (AI) technology in Arizona, given the region’s strategic location and resources.
The groundbreaking for the third fab represents a continued evolution of TSMC’s operations within Arizona, which began with its initial plans in May 2020 to create a substantial semiconductor manufacturing campus. To date, TSMC has acquired approximately 1,130 acres for this massive project and started construction on its first fab in April 2021. The first facility has begun high-volume production utilizing sophisticated four-nanometer technology, demonstrating yields comparable to TSMC’s operations in Taiwan.
Construction is also progressing for TSMC’s second fab, which will utilize advanced three-nanometer technology. The overall complex in Arizona is set to include additional packaging facilities and a significant research and development center aimed at fostering innovation within the semiconductor ecosystem.
TSMC currently employs around 3,000 people in Phoenix, with plans for workforce expansion to match its increasing production needs driven by the new investments and facilities. The growth of TSMC’s operations in Arizona further highlights the potential role of public-private partnerships in advancing U.S. manufacturing capabilities and stimulating economic growth.
In December 2022, former President Joe Biden visited the TSMC campus, reinforcing the administration’s support for initiatives that bolster domestic manufacturing within critical technology sectors. TSMC’s commitment to the Phoenix project now totals $165 billion, illustrating the company’s strategic response to rising customer demands, especially in sectors focused on AI and technological innovation.
Deeper Dive: News & Info About This Topic
- AZ Family: TSMC Breaks Ground on Third Facility in North Phoenix
- Wikipedia: Semiconductor Manufacturing
- KTAR: TSMC Facility in Phoenix
- Google Search: TSMC Phoenix expansion
- Mac Daily News: TSMC Breaks Ground on Third Arizona Chip Fab
- Google Scholar: TSMC construction Phoenix
- AZ Central: TSMC Details Expansion Plans for Phoenix Complex
- Encyclopedia Britannica: Semiconductors
- TSMC Press Release: TSMC News
- Google News: TSMC Arizona
