Phoenix mayor says TSMC ‘success story’ led to expanded presence in town

Apr 15, 2024, 4:25 AM

Kate Gallego called TSMC's expansion in Phoenix a "success story." (Photo by Annabelle Chih/Getty Images)

(Photo by Annabelle Chih/Getty Images)

PHOENIX — Phoenix Mayor Kate Gallego wasn’t anticipating such a hefty investment from Taiwan Semiconductor Manufacturing Company when she first tried to bring it to town five years ago, but she believes its expansion is well warranted.

Last week, the Biden administration agreed to give TSMC $6.6 billion to support its expansion in Phoenix. TSMC also said it will build a third fab in Phoenix before the end of the decade.

“When I went in 2019 to Taiwan to recruit TSMC, we were hoping to get what was then a 12 billion dollar project, but because it has been so successful in Phoenix, the company has agreed to grow it,” Gallego told KTAR News 92.3 FM’s The Mike Broomhead Show on Friday.

The news comes nearly four years after TSMC unveiled initial plans to bring a pair of chip factories to Phoenix following a national search.

The third fab will bring TSMC’s total investment in Arizona to over $65 billion. The first fab is scheduled to be operational in the first half of 2025.

Gallego said the expanded presence is a testament to Phoenix’s ability to provide for high-scale operations on an international level.

The plants will produce semiconductor chips that power smartphones, cars, satellites and weapons systems. Thousands of jobs will be created as a result of the construction and operations of the hubs.

“Everyone agrees we need to make the most advanced chips in the United States to be dependent on overseas manufacturing,” Gallego said. “So, this is important for jobs and economic activity locally, but also for our national security.”

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Phoenix mayor says TSMC ‘success story’ led to expanded presence in town