Taiwan chipmaker TSMC to build second Arizona facility, increase investment to $40 billion
PHOENIX — Chipmaker Taiwan Semiconductor Manufacturing Company is strengthening its presence in Arizona, announcing Tuesday it will build a second facility in the state and increase its investment to $40 billion.
The announcement comes on the same day President Joe Biden will visit TSMC’s multibillion dollar under-construction plant in north Phoenix near Interstate 17 and Loop 303, which is expected to open in 2024.
The second site will be nearby and will add $28 billion to TSMC’s investments in Arizona, according to the company.
The facilities combined will create 10,000 jobs, with 4,500 directly with TSMC. Another 10,000 construction jobs will be available.
TSMC also announced it will produce more chips than initially proposed at its first facility because the company will make 4 nanometer ones. Initially, TSMC said it would produce 5 nanometer chips at the facility.
The second site will make 3 nanometer chips.
Apple, whose CEO Tim Cook is expected to be with Biden in Phoenix on Tuesday, has already committed to buying chips from the TSMC facility.
The Hsinchu, Taiwan-based company’s news follows a busy few months of semiconductor news statewide and nationally.
In August, Biden signed the $280 billion CHIPS Act that is designed to boost domestic high-tech manufacturing and lessen dependence on overseas semiconductor supply chains. The bill sets aside $52 billion for the computer-chip sector.
Earlier this month, Arizona allocated $100 million in federal funding to juice the state’s semiconductor industry.
The Arizona Commerce Authority will manage the allocation, which will in part be used to help the state take advantage of opportunities under the CHIPS Act.
Arizona Gov. Doug Ducey visited Taiwan in September, where he spoke during a meeting with Taiwanese President Tsai Ing-wen and hailed TSMC’s investment in the state.
TSMC has operations in Asia, Europe and North America.
The Associated Press contributed to this report.