Construction of the new TSMC semiconductor manufacturing facility in Phoenix, marking a significant economic milestone.
Taiwan Semiconductor Manufacturing Co. (TSMC) is set to invest an additional $100 billion into its north Phoenix complex, marking the largest foreign direct investment in the U.S. This expansion includes six new semiconductor plants and is projected to create tens of thousands of jobs. With over $205 billion invested in Arizona’s semiconductor sector since 2020, this move aligns with national goals to bolster domestic semiconductor production and reduce reliance on foreign sources.
In a monumental move that promises to reshape the economic landscape of Phoenix, Taiwan Semiconductor Manufacturing Co. (TSMC) has announced an extraordinary plan to invest an additional $100 billion into its north Phoenix complex. This investment is part of a broader vision anticipated to reach a jaw-dropping total of $165 billion in the state of Arizona. This monumental investment not only marks Arizona’s largest in history but also stands as the largest foreign direct investment in the entire United States.
The excitement surrounding this announcement has been palpable, with Phoenix Economic Development Director Christine Mackay labeling March 3 as “billions day”. Alongside TSMC’s ambitious plans, the Mayo Clinic has also unveiled a grand $1.9 billion expansion of its hospital campus, highlighting a wave of significant investments flowing into the area.
With six new semiconductor fabrication plants (fabs), two advanced packaging facilities, and a cutting-edge research and development center on the drawing board, TSMC’s plans indicate a transformative era for local employment. Forecasts suggest that this expansion will create tens of thousands of jobs and spur development on thousands of surrounding acres, challenging the limits of what the Phoenix region can achieve in semiconductor manufacturing.
Initially, the first two TSMC fabs were projected to contribute about $38 billion to the local economy every 13 years. With this new wave of investment, that economic impact could potentially quadruple. This means more jobs, more business opportunities, and more growth for Phoenix and beyond.
TSMC’s expansion isn’t just a stroke of luck; it is the culmination of over a decade of dedicated effort that began in 2013 when a delegation from Arizona made the trip to Taiwan to entice TSMC. After facing setbacks, including missing out on an opportunity in 2016, Phoenix’s proposal for a high-tech science and technology park reignited TSMC’s interest, ultimately leading to their initial $12 billion investment in 2020.
In recent months, TSMC’s investment commitment has surged, escalating to $40 billion and now hitting $65 billion. Plans are also in the works for a massive $7 billion technology park that is expected to bring an eye-catching 30 million square feet of commercial space and opportunities for up to 70,000 jobs in the vicinity of TSMC’s operations.
Even though TSMC’s progress was not without hiccups—facing some construction delays and cultural adjustments—the company is now firmly on track. With billions in federal funding backing the project, TSMC has already commenced production at its first fab, which is a significant milestone.
Collaboration has been key in TSMC’s establishment in Phoenix. Partnerships spanning the state, city, and TSMC have paved the way for important workforce development initiatives. This includes programs focusing on apprenticeship training for semiconductor technicians and cultural integration assistance for Taiwanese workers relocating to the U.S., making the transition smoother and more efficient.
Mayor Kate Gallego of Phoenix has shared her enthusiasm for these developments, expressing how this investments validate the city’s strategic economic development approach. The influx of investments into Arizona’s semiconductor sector has been remarkable, with over $205 billion drawn in since 2020 alone, making it the top state for such investments in the nation.
TSMC’s efforts align neatly with broader national goals, especially under the CHIPS and Science Act, which aims to enhance domestic production of semiconductors and lessen reliance on foreign sources for critical technologies. Currently employing around 3,000 people in Arizona, TSMC’s expansions are set to inject high-paying jobs tied to advanced semiconductor manufacturing and research into the local economy.
With all eyes on Phoenix, it looks like the city is stepping right into the spotlight as a burgeoning semiconductor power. The transformative impact of TSMC’s historic expansion is not just a win for Phoenix, but a game changer for the nation’s technology landscape, setting the stage for exciting developments to come.
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