TSMC Begins Construction on New Facility in Phoenix

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The construction of TSMC's third semiconductor facility in Phoenix marks a significant investment in the U.S. semiconductor industry.

News Summary

The Taiwan Semiconductor Manufacturing Company (TSMC) has commenced construction on its third semiconductor fabrication facility in Phoenix, Arizona. This expansion is part of TSMC’s goal to bolster U.S. semiconductor capacity, with an investment exceeding $165 billion across its Arizona operations. The facility will focus on producing semiconductor chips essential for advancements in artificial intelligence, data centers, and smartphones, while also contributing to job creation and workforce training initiatives in the local community.

Phoenix, Arizona — The Taiwan Semiconductor Manufacturing Company (TSMC) has officially broken ground on its third semiconductor fabrication facility in Phoenix, marking a significant expansion of its operations in the United States. This new facility contributes to TSMC’s overall investment exceeding $165 billion across its three Phoenix locations, a move that aims to bolster the U.S. semiconductor capacity essential for fostering cutting-edge technology.

The groundbreaking ceremony took place on April 29, 2025, and was attended by U.S. Secretary of Commerce Howard Lutnick. The new facility is slated to manufacture semiconductor chips that will support advancements in various high-tech sectors, particularly in artificial intelligence (AI), data centers, and smartphones. TSMC’s commitment to this initiative underlines its focus on meeting the growing demands of American innovators in critical areas like smartphones and high-performance computing (HPC).

TSMC’s Chairman and CEO articulated the company’s dedication to enhancing the advanced semiconductor manufacturing ecosystem in the U.S., acknowledging the valuable support from various government entities in these endeavors. Such collaboration is pivotal in ensuring that companies like TSMC can effectively respond to the rapidly evolving needs of technology sectors.

Arizona has emerged as a pivotal player in the semiconductor industry, having surpassed other states in the U.S. with a substantial influx of semiconductor-related investments. Since 2020, the state has attracted over 40 semiconductor projects, amounting to more than $102 billion. These initiatives have generated more than 15,700 direct jobs within this sector, demonstrating the potential of semiconductor manufacturing as a major employment driver in the region.

Alongside its facility construction, TSMC is developing proactive workforce training programs in partnership with Arizona State University and Maricopa Community Colleges. This collaborative effort focuses on equipping the local workforce with the necessary skills for the semiconductor industry. TSMC plans to allocate $5 million over the next five years to train 80 facility technician apprentices, further investing in the local community by cultivating skilled employment opportunities.

The Greater Phoenix area is becoming a notable hub for semiconductor manufacturing, with over 75 companies operating in the sector, including industry giants such as Intel and a myriad of essential suppliers. This concentration of companies not only strengthens Arizona’s position in the technology industry but also fosters a competitive environment for innovation and economic growth.

The state government has taken significant steps to promote the growth of the semiconductor industry by introducing new legislation that offers tax incentives and reduces property taxes for semiconductor firms. These measures are vital for encouraging infrastructure improvements and further investments in manufacturing capabilities. For its rapid expansion in semiconductor production, Arizona has been recognized as the top state in the U.S. for manufacturing construction.

Additionally, the recent relocation of the SEMICON West conference to Phoenix—marking its first occurrence in this city in 50 years—highlights the area’s rising status as a critical locality for semiconductor manufacturing. This event underlines the growing recognition of Phoenix not only as a manufacturing zone but also as a focal point for industry advancements and partnerships.

In summary, TSMC’s new fabrication facility in Phoenix represents a significant step forward in expanding the U.S. semiconductor industry, with substantial investments, job creation, and partnerships focused on workforce development. Arizona’s proactive approach and favorable business landscape are pivotal in attracting and nurturing semiconductor ventures, heralding a bright future for the region’s technology landscape.