Gov. Doug Ducey today announced that following a national search, Taiwan Semiconductor Manufacturing Company (TSMC) has selected Arizona for its new U.S. advanced semiconductor factory. The project will create over 1,600 new high-tech jobs and generate thousands of additional jobs in the state for suppliers and other companies within the semiconductor industry. TSMC’s total spending on this project, including capital expenditure, will be approximately $12 billion from 2021 to 2029.
“We’re incredibly proud that one of the world’s leading technology companies has chosen Arizona for this high-tech project, one with national and global significance,” said Governor Ducey. “TSMC could have picked any place in the world to build this advanced manufacturing factory. They chose Arizona for our unbeatable business climate, already thriving tech sector and ready access to an international supply chain. I’d like to thank TSMC Chairman Dr. Mark Liu for his commitment to Arizona. We are honored to be selected for this project and look forward to building a collaborative long-term relationship with TSMC. I’m very grateful to President Donald Trump for his leadership and tireless efforts to bring more manufacturing back to our shores. I’d also like to thank Secretary Ross, his team at the U.S. Department of Commerce including SelectUSA, and the Trump administration for their partnership.”
Arizona has long been a hub for the advanced manufacturing and semiconductor industries. The state’s skilled workforce, strong supply chain, strategic geographic location, commitment to pro-innovation policies and unmatched quality of life have continued to drive rapid industry growth and economic momentum. This new U.S. facility will enable TSMC to provide enhanced service to customers and partners and increase its ability to attract global talent.
The facility will utilize TSMC’s 5-nanometer technology for semiconductor wafer fabrication and have the capacity to produce 20,000 wafers per month. Construction is planned to begin in 2021 with production targeted to start in 2024. The Arizona facility will be the company’s second manufacturing operation in the United States.
“This announcement is fantastic news for Arizona and America, and bad news for China,” Sen. Martha McSally said. “Communist China has long sought to dominate the global semiconductor supply chain, which would create an overreliance on Beijing to create semiconductor chips that power everything from 5G to sophisticated weapons systems. I have been advocating to enhance key manufacturing like this domestically as it impacts our national security. Today’s announcement by TSMC brings us closer to that goal. Arizona is a great place to live and work and I welcome TSMC to our amazing state. Congratulations to Governor Ducey and the Trump administration for making this happen.”
Several sites in the City of Phoenix are still being evaluated for the location of the factory. The Arizona Commerce Authority will continue working with TSMC, the U.S. administration, the City of Phoenix and the Greater Phoenix Economic Council to finalize all aspects of the project.
