TSMC Breaks Ground on Third Semiconductor Facility in Phoenix

Categories: Arizona Business NewsArizona State News

Construction is underway for TSMC's third semiconductor fabrication facility in Phoenix, promising economic growth.

News Summary

Taiwan Semiconductor Manufacturing Company (TSMC) has begun construction on its third semiconductor fabrication facility in Phoenix, Arizona, promising 6,000 jobs and focusing on advanced chip production. With a total investment exceeding $165 billion, this expansion is expected to significantly boost the local economy and strengthen the U.S. semiconductor supply chain. The new facility showcases TSMC’s commitment to cutting-edge technology and job creation in the tech sector.

Phoenix, Arizona — Taiwan Semiconductor Manufacturing Company (TSMC) has officially commenced construction on its third semiconductor fabrication facility in north Phoenix, located near 43rd Avenue and Dove Valley Road. This significant expansion comes with a promise to generate approximately 6,000 jobs and manufacture advanced chips utilizing cutting-edge 2-nanometer process technology.

TSMC’s investment in its three Phoenix facilities will exceed $165 billion, marking a major commitment to semiconductor manufacturing in the United States. The new fabrication facility is projected to begin production by the end of the decade, contributing to a growing workforce that, by then, is expected to total 6,000 employees across TSMC’s Phoenix operations.

The groundbreaking event highlighted TSMC’s integral role in the semiconductor industry, which is essential for modern technology. U.S. Secretary of Commerce Howard Lutnick attended the ceremony, further underscoring the government’s backing for American manufacturing initiatives. This investment aligns with efforts to bolster domestic semiconductor production, aimed at enhancing supply chain resilience within the tech sector.

TSMC’s first fab in Phoenix started operations last year and currently employs about 3,000 workers. As the company ramps up its production capabilities, it has also launched an apprenticeship program designed to cultivate a skilled workforce of technicians. This initiative reflects the growing demand for qualified employees in the semiconductor field, particularly as TSMC and other companies expand their operations in the area.

The expansion is projected to create 40,000 construction jobs over the next four years, in addition to tens of thousands of high-tech, high-paying roles in Arizona. TSMC’s investments are anticipated to contribute over $200 billion in economic activity throughout the state over the next decade. Such economic stimulation is crucial in supporting local communities as well as the growth of the tech industry nationwide.

In tandem with dependency on local job creation, TSMC produces vital chips for prominent technology companies, including Apple, Intel, and Nvidia. This positions TSMC at the forefront of the semiconductor industry in North America, enhancing its reputational strength while fostering innovation in critical areas like high-performance computing, smartphones, and artificial intelligence.

In December 2023, TSMC was awarded up to $6.6 billion from the CHIPS Act, a federal initiative aimed at strengthening U.S. semiconductor manufacturing infrastructure. TSMC’s expansion plans signify both a response to this initiative and a continued commitment to advanced fabrication technology and growth in Arizona.

The approval for the third fab, which was announced in April 2024, is part of TSMC’s broader growth strategy. It underscores the company’s long-term vision to enhance its manufacturing capabilities and contribute to the prosperity of the local and national economy.

For Arizona, this expansion presents an opportunity not only for job creation but also for positioning itself as a central hub in the global semiconductor supply chain. The collaboration between TSMC, government authorities, and educational institutions to develop a qualified workforce is crucial in ensuring the continued success and sustainability of this burgeoning industry.