In a move that’s expected to bring about significant changes to the semiconductor manufacturing landscape, Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to invest $12 billion in Phoenix, Arizona. This ambitious project will involve the construction of an advanced semiconductor manufacturing fabrication facility, marking a significant step forward in the company’s commitment to increasing its global presence.
Multi-Faceted Investment
TSMC first announced its plans to build a second fab in Phoenix in December 2022, increasing its total investment to $40 billion. Later in April 2024, the US Department of Commerce and TSMC Arizona jointly announced up to $6.6 billion in direct funding under the CHIPS and Science Act. This significant funding has further strengthened the company’s resolve to establish the most advanced chip manufacturing facilities in the United States.
Beyond the Investment
The TSMC Arizona project will not only generate massive investments but also create approximately 6,000 jobs. The facility will also require over 20,000 unique construction jobs and tens of thousands of indirect supplier jobs. With a total of three fabs planned for the facility, TSMC will become one of the largest employers in Arizona.
A Game-Changer in Global Competitiveness
The construction of the third fab marks a significant milestone in the US government’s goal to onshore semiconductor manufacturing. By bringing leading-edge manufacturing facilities to the United States, TSMC is not only creating a global hub for chip production but also ensuring that the country remains a significant player in the rapidly evolving semiconductor landscape.
Leading-Edge Technology
TSMC’s Arizona facility will employ some of the most advanced semiconductor process technology available. The first fab, expected to start production in the first half of 2025, will utilize the leading-edge N4 process. The second fab, planned to come online in 2028, will feature the N3 and N2 processes. The third fab, slated to start production by the end of the decade, will use even more advanced process technology.
A Path Forward for Innovation
TSMC Arizona’s focus on leading-edge technology will enable customers to create innovative products that transform industries across mobile, AI, and HPC. This partnership will drive advancements that can unlock new possibilities across the tech spectrum, revolutionizing the way we live, work, and communicate.
TSMC’s significant investment in Phoenix, Arizona marks a turning point in the semiconductor industry, underscoring the importance of this rapidly evolving sector in the global economy. As the industry continues to drive innovation and technological advancements, this ambitious project is poised to shape the future of chip production and beyond.
Frequently Asked Questions
Question 1: What is TSMC’s total investment in the Arizona facility?
TSMC’s total investment in the Arizona facility has reached over $65 billion, making it the largest foreign direct investment in a greenfield project in the United States.
Question 2: When is the third fab expected to start production?
The third fab is slated to start production by the end of the decade, utilizing even more advanced process technology.
Question 3: How many jobs will TSMC Arizona create?
The facility is expected to create approximately 6,000 direct jobs and over 20,000 unique construction jobs, with tens of thousands of indirect supplier jobs also anticipated.
Question 4: What will the leading-edge technology employed by TSMC Arizona’s fabs enable customers to do?
TSMC Arizona’s focus on leading-edge technology will enable customers to create innovative products that transform industries across mobile, AI, and HPC.
Question 5: Why is TSMC investing in the United States?
TSMC is investing in the United States to increase its global presence and contribute to the country’s efforts to strengthen national economic competitiveness through the onshoring of semiconductor manufacturing.
