PHOENIX — The federal government has completed an investment in a technology company to build a large semiconductor manufacturing operation in Phoenix, which officials say will bring good-paying jobs for decades to come.
Taiwan Semiconductor Manufacturing Company (TSMC) is poised to use $6.6 billion to create 20,000 construction jobs and 6,000 high-wage manufacturing jobs in Phoenix.
The CHIPS and Science Act grants will help TSMC build three factories that will make chips used in smartphones, cars, satellites, weapons systems and other electronic devices.
Building these factories near Loop 303 and 51st Street in north Phoenix would allow the United States to have a domestic supplier of these essential chips, so that global crises like the global chip shortage could be avoided in the United States. There will be no threat to the economy.
“Today’s final agreement with TSMC will facilitate $65 billion in private investment to build three state-of-the-art facilities in Arizona,” President Joe Biden said in a news release Friday.
The timing of the move is important, in part because comments made by President-elect Donald Trump before the election raised concerns that he would not follow through on funding promises made by the Biden administration.
Semiconductor manufacturing Phoenix factory boosts economy
Sen. Mark Kelly, D-Ariz., helped negotiate the CHIPS and Science Act.
“Arizona will become one of the world’s leading centers for cutting-edge microchip manufacturing,” he said in a news release Friday. “This is not only a win for Arizona’s economy, but also for our national security and continued global leadership and competitiveness.”
TSMC plans to begin large-scale microchip production in Phoenix early next year. The first factory will produce the most advanced chips ever made in the United States.
Meanwhile, the second and third factories will manufacture the world’s most advanced chips.
TSMC’s commitment to invest more than $65 billion is the largest foreign direct investment in Arizona history.
Where does TSMC Arizona’s funding come from?
TSMC signed a preliminary memorandum of understanding regarding CHIPS Act funding in April.
The U.S. Department of Commerce recently completed due diligence, paving the way for a final agreement.
Phoenix Mayor Kate Gallego, who traveled to Taiwan in 2019 to support TSMC’s recruitment, said the partnership will improve the lives of thousands of residents across the Valley.
“From creating incredibly high-paying union jobs to strengthening the nation’s critical supply chain for this much-needed advanced technology, the CHIPS Act will bring generational benefits to our cities, regions, and nation. There is no question that it will have an impact far beyond that,” Gallego said. In release.
TSMC Arizona, the foreign company’s local subsidiary, will receive the grant. Funding will be received upon completion of construction, production and commercial milestones.
“Phoenix is proud to be leading the front lines of America’s manufacturing revolution, and we are ready to continue the strong momentum the city has and our partnership with TSMC and its suppliers,” Gallego said. said.
