More CHIPS, more jobs? Semiconductor manufacturing company to build 3rd factory in Arizona with support from CHIPS Act – 12news.com KPNX
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PHOENIX — A major semiconductor manufacturing company that is already building two plants in the north Valley is receiving a major investment from the Biden administration that will allow the company to build a third plant, the administration announced Monday morning.
The Taiwan Semiconductor Manufacturing Company, the Biden administration and the U.S. Department of Commerce agreed to an investment that will “support the construction of leading-edge semiconductor manufacturing facilities right here in the United States,” according to a statement from the president.
The Biden administration announced $6.6 billion in direct funding with up to $5 billion in additional loans.
The investment will allow TSMC to build a third semiconductor manufacturing plant in Phoenix, which would bring the company’s investment in Arizona to more than $65 billion and would allow them to create more than 25,000 construction and manufacturing jobs.
This agreement will also give TSMC $50 million from the CHIPS and Science Act, which will be used to train and develop workers.
“This community has a lot of talent,” Arizona Advanced Manufacturing Institute Director Leah Palmer said. “We’re asking them to come to the table so that we can train them and shape that future.”
How that $50 million will be used was not announced Monday. But Arizona’s colleges and universities have been preparing for the opening of TSMC’s massive plant for years.
“We will put you on that path,” said Kyle Squires, Dean of the Ira A. Fulton School of Engineering at Arizona State University.
“It’s like being on a rocket ship or in outer space, the levl of complexity, the level of sophistication of these tools,” Squires said.
TSMC is forecasting 6,000 new jobs for the facility when the fabrication units are done. Officials said the workforce expansion would also spread to TSMC’s suppliers and vendors.
“The CHIPS and Science Act…Arizona is going to be the biggest beneficiary,” Sen. Mark Kelly (D-AZ) said Monday.
The president’s statement continued:
“Semiconductors – thosetiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems,” President Biden’s statement read. “America invented these chips, but over time, we went from producing nearly 40% of the world’s capacity to just over 10%, and none of the most advanced chips, exposing us to significant economic and national security vulnerabilities. I was determined to turn that around, and thanks to my CHIPS and Science Act – a key part of my Investing in America agenda – semiconductor manufacturing and jobs are making a comeback.
“These facilities will manufacture the most advanced chips in the world, putting us on track to produce 20% of the world’s leading-edge semiconductors by 2030,” the statement continued.
Phoenix Mayor Kate Gallego issued the following statement:
“When TSMC chose to expand to Phoenix, it marked the largest foreign direct investment in United States history. Today’s CHIPS funding announcement marks the largest federal award Arizona has ever received, making history once again,” Gallego said. “The ripple effects from both TSMC’s expansion and the federal government’s investment will go far beyond our city limits—they will shape the trajectory of our entire region, create thousands of high-wage jobs to support families, and fuel strong economic growth for generations to come.
TSMC announced they would build their first manufacturing facility in Arizona in May 2020. Seven months later, they bought 1,129 acres of land in north Phoenix, near 43rd Avenue and the Loop 303.
Construction began on the facility in April 2021 and was completed in July 2022. President Biden visited and toured the facility in December 2022. That was also when the company announced they would build a second semiconductor plant in Phoenix.
TSMC placed the last beam in place on the second plant in January.
The company currently has more than 2,200 employees in Arizona and more than 12,000 construction workers are on-site daily.
They hope to begin semiconductor production in 2025.
Monday’s announcement comes just a few weeks after the Biden administration announced that it will invest $8.5 billion in Intel facilities across the country, including here in Arizona.
The investment is also part of the CHIPS and Science Act and comes with an additional $11 billion in loans to Intel.
Arizona has four Intel microchip manufacturing plants, which is more than anywhere else in the nation. Intel is currently building two new production facilities at its 13,000-employee Ocotillo campus in Chandler.
The exact amount of money from this investment headed to Arizona is unclear, but officials expect it to create about 9,000 new jobs in the state.
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