News Summary
Taiwan Semiconductor Manufacturing Company (TSMC) has begun construction on its third semiconductor fabrication facility in Arizona, which is expected to create approximately 6,000 jobs and enhance U.S. manufacturing. Utilizing advanced 2-nanometer technology, production is expected to start around 2030. This expansion, involving a significant $100 billion investment, aims to bolster the U.S. semiconductor landscape and significantly impact the local economy, estimated to exceed $200 billion over the next decade.
Phoenix, Arizona – Taiwan Semiconductor Manufacturing Company (TSMC) has officially begun construction on its third semiconductor fabrication facility in Arizona, a significant step that is likely to enhance U.S. manufacturing and create thousands of new jobs in the sector. The new facility is strategically located near 43rd Avenue and Dove Valley Road in north Phoenix.
This third semiconductor fab is expected to utilize cutting-edge 2-nanometer technology, potentially even more advanced processes, affirming TSMC’s leading position in the semiconductor industry. Production from the new fab is anticipated to commence around the end of the decade, specifically around 2030.
The construction of this facility is projected to create approximately 6,000 jobs in the region, contributing significantly to local employment rates and the economy. U.S. Secretary of Commerce Howard Lutnick visited the site to highlight this groundbreaking development, emphasizing the administration’s commitment to revitalizing American manufacturing through initiatives established during the previous administration. He acknowledged the expansion as a critical element in strengthening the U.S. semiconductor landscape.
Economic Impact and Industry Support
TSMC, the world’s largest semiconductor manufacturer, produces chips for high-profile technology companies such as Apple, Intel, and Nvidia. The company has recently pledged an additional investment of $100 billion in the United States, supplementing over $65 billion previously committed. This substantial investment is expected to generate around 40,000 construction jobs over the next four years and tens of thousands of permanent high-tech positions, which will have a profound impact on the U.S. job market.
Experts estimate that TSMC’s expansion will lead to an economic impact exceeding $200 billion across Arizona within the next decade. This projection illustrates the significant benefits of bringing semiconductor manufacturing closer to home, thereby bolstering local economies and reducing dependency on foreign production.
Development Timeline and Previous Investments
TSMC began its journey in Arizona in May 2020 when it acquired approximately 1,130 acres of land for its campus. The first semiconductor fab at this campus commenced high-volume production in late 2022, while the second fab is set to employ innovative 3nm, 2nm, and A16 processes. The groundbreaking for the third fab coincided with Secretary Lutnick’s site tour, marking it as the largest single foreign investment in U.S. history.
In December, TSMC was awarded up to $6.6 billion in assistance from the CHIPS Act, designed to incentivize the development of semiconductor facilities within the United States. Notable figures in the technology industry, including leaders from Apple and AMD, have voiced their support for TSMC’s efforts, emphasizing the significance of this expansion for American innovation and global competitiveness in technology sectors.
Future Plans and Considerations
TSMC’s plans extend beyond the immediate construction of the third fab. The company aims to establish six plants focused on advanced wafer fabrication and multiple facilities dedicated to advanced packaging in the United States. This commitment signifies a long-term strategy to support America’s leading innovators across various fields, including smartphones, high-performance computing (HPC), and artificial intelligence (AI).
Moreover, economic officials speculate that TSMC’s expansion in Arizona might encourage Taiwanese suppliers to establish their operations in the U.S. as well. However, they caution that such transitions may take several years to materialize.
With the commencement of construction on this third semiconductor facility, TSMC not only underscores its role as a global leader in the semiconductor industry but also positions itself as a pivotal player in American manufacturing, responding to the rising demand for advanced technological solutions and fostering job creation in the United States.
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