Phoenix, Arizona, November 29, 2025

Taiwan Semiconductor Manufacturing Company (TSMC) has announced a historic $165 billion investment in Phoenix, Arizona, to build a semiconductor manufacturing complex. This project, the largest foreign direct investment in U.S. history, is set to create over 6,000 high-paying jobs and significantly boost the local economy. TSMC plans to construct six fabrication plants and advance technologies in chip production, reinforcing Arizona’s position as a leader in the semiconductor industry.

Phoenix, Arizona: TSMC’s $165 Billion Investment Transforms State’s Economic Landscape

Phoenix, Arizona – Taiwan Semiconductor Manufacturing Company (TSMC) has announced a monumental $165 billion investment to establish a state-of-the-art semiconductor manufacturing complex in Phoenix, marking the largest foreign direct investment in U.S. history. This ambitious project is set to revolutionize Arizona’s economy, creating thousands of high-paying jobs and positioning the state as a global leader in advanced chip production.

Unprecedented Investment and Expansion

TSMC’s expansion includes plans for six semiconductor fabrication plants (fabs), two advanced packaging facilities, and a major research and development center. The first fab began limited production of 4nm chips in late 2024, with subsequent fabs targeting 3nm and 2nm chips by 2028 and 2029, respectively. This strategic investment aims to meet the growing demand for cutting-edge semiconductor technologies, particularly in artificial intelligence and high-performance computing sectors.

Economic Impact and Job Creation

The project is expected to generate over 6,000 direct manufacturing jobs, with an average annual salary of $80,350. Additionally, it will create tens of thousands of construction and supplier jobs over the next five years. An analysis by the Greater Phoenix Economic Council (GPEC) estimates that the investment will produce approximately $32.9 billion in economic output, with $17.2 billion in direct output and $15.6 billion in indirect output. This economic boost underscores Arizona’s emergence as a hub for semiconductor manufacturing, often referred to as the “Silicon Desert.”

Government Support and Strategic Importance

The expansion is supported by the CHIPS and Science Act, a bipartisan law aimed at strengthening domestic semiconductor manufacturing and reducing reliance on foreign supply chains. TSMC’s investment aligns with national efforts to bolster technological leadership and economic resilience. Arizona’s strategic location and favorable business environment have been pivotal in attracting this significant investment, highlighting the state’s role in advancing the U.S. semiconductor industry.

Community and Workforce Development

TSMC is committed to fostering sustainable growth and creating quality, family-sustaining jobs. The company plans to launch apprenticeship programs, develop partnerships with local universities, promote worker safety, and implement advanced water conservation methods and renewable energy initiatives. These efforts aim to integrate TSMC’s operations with the local community and ensure long-term economic benefits for Arizona residents.

Background Context

Founded in 1987, TSMC has been a pioneer in semiconductor manufacturing, supplying chips for a wide range of applications, including smartphones, electric vehicles, and AI systems. The decision to establish a major manufacturing presence in Phoenix reflects TSMC’s strategic vision to support its U.S. customers and contribute to the nation’s technological advancement. The Arizona facility is poised to play a crucial role in strengthening the U.S. semiconductor ecosystem and enhancing global competitiveness.

Conclusion

TSMC’s $165 billion investment in Phoenix represents a transformative milestone for Arizona’s economy, creating high-quality jobs and positioning the state at the forefront of semiconductor innovation. This development not only benefits the local community but also contributes to national economic growth and technological leadership.

Frequently Asked Questions (FAQ)

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Key Features of TSMC’s Arizona Investment

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Author: STAFF HERE PHOENIX WRITER

The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.