TSMC Arizona leads the way as semiconductor manufacturers find a new home in Phoenix and change the face of the industry.
Back in 2020, TSMC Arizona, kicked off what has grown into a commitment to invest $65 billion in Phoenix. The company is building three leading-edge semiconductor production facilities, or fabrications, in the Arizona city. It’s the latest — and largest — foreign direct investment in a greenfield project in the state (and in United States history), as Phoenix quickly becomes the nation’s chipmaking hub.
In the last four years alone, more than a dozen companies announced that they’d manufacture products in the metropolitan area, and the city was named the No. 1 market for manufacturing construction, with the most novel major projects and highest employment projections in the country.
And then there are the semiconductor companies. There are currently 75 semiconductor companies in the greater Phoenix area, with 40 projects debuting since 2020, specializing in everything from manufacturing to advanced packaging to research and development. Altogether, they represent more than $102 billion in capital investment and more than 15,700 industry jobs, which have attracted related companies and suppliers to the area as well. The result is the creation of a strong manufacturing ecosystem anchored by TSMC Arizona.
“I’m excited about the impacts of the semiconductor sector and going forward, Arizona is gonna continue to be known as semiconductor central,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council, whose economic analysis found that TSMC Arizona’s$65 billion investment will create 20,000-plus jobs. “I don’t know of a period in time where we’ve seen this kind of intense investment and job creation in our state.”
Why Phoenix?
For TSMC Arizona, the decision to locate its advanced chipmaking plants in Phoenix was an easy one, as leaders at all levels have put in place incentives that make it an attractive location for tech manufacturing, including decreased property taxes and reimbursements for significant portions of public infrastructure improvements.
“As we were considering different sites in the U.S., the Arizona team made a strong impression with their preparedness and understanding of the range of issues and criteria for our decision,” said a TSMC Arizona spokesperson. “The team assembled included top elected leaders in city and state government, economic development, utilities, and higher education.”
TSMC Arizona’s choice to build in Phoenix makes total sense to Camacho. “Manufacturers and suppliers are attracted to our environment that offers a favorable corporate tax structure and tax credits, and a minimalist regulatory approach in addition to competitive labor, land and operating costs,” he said.
The city and state’s commitment to developing a strong pipeline of workers is also crucial to companies like TSMC investing in the area, with partnerships with Arizona State University and Maricopa Community Colleges educating the technicians of tomorrow. “ASU is a major partner on workforce development initiatives and is helping bridge the gap between when new technology is invented and when it’s made and deployed,” Phoenix Mayor Kate Gallego said.
Phoenix’s Tech Tradition
While Phoenix is experiencing a boom in semiconductor manufacturing, it’s not the first time a company like TSMC Arizona saw value in investing in the southwestern city. Back in 1949, Motorola opened a research lab in the city, which eventually came to produce transistors, a type of semiconductor.
In 1976, Advanced Semiconductor Materials opened the doors of its United States headquarters in Phoenix. It’s still there, home to the company’s largest research and development facility in the world. A year later, Intel opened its first semiconductor fabrication in Chandler, a suburb of the city.
TSMC Arizona’s $65 billion investment takes things up a notch at a time when the United States seeks to lead the semiconductor industry. In November, the U.S. Department of Commerce announced a $6.6 billion grant for TSMC Arizona as part of the CHIPS and Science Act, a bipartisan bill that funds innovative ideas and technologies that will restore the nation’s place in the semiconductor industry.
“Entering this phase of the U.S. CHIPS and Science Act marks a pivotal step in strengthening the semiconductor ecosystem in the United States,” says TSMC chairman and CEO Dr. C.C. Wei. “TSMC appreciates the continued collaboration with customers, partners, local communities, and the U.S. government beginning in early 2020. The signing of this agreement helps us to accelerate the development of the most advanced semiconductor manufacturing technology available in the U.S.”
The Path Ahead
Beyond its investment in building plants, TSMC Arizona has invested in the people of Phoenix. When it opens its third fab on its 1,129-acre lot in 2030, it will employ a total of 6,000-plus people helping to produce tens of millions of chips stateside. Many will be technicians who matriculated through TSMC Arizona’s newly expanded apprenticeship program.
Operated in partnership with the Arizona Commerce Authority, the United States Department of Commerce, and the City of Phoenix, the $5 million program will add about 130 facilities technician, equipment technician, and process technician apprentices in 2025. While completing an apprenticeship isn’t a requirement to work at TSMC Arizona, the company says it will provide trainees with the skills they need to succeed in the long term and pave the way for students who are typically underrepresented in the semiconductor industry.
“One of the top considerations in TSMC’s decision to expand here was the opportunity to tap a local and diverse talent pipeline and collaborate with a world-class U.S. education system. Our first-of-its-kind program for semiconductor technicians represents what’s possible when government, industry, and education come together,” said Rose Castaneres, president of TSMC Arizona. “We are deeply committed to creating job opportunities for local Arizonans. Our newest technician apprentices will get the support and training they need to thrive in their new careers and help us make the most advanced semiconductor technology in the United States.”
Turning Heads
People are taking notice of the transformation happening in Phoenix outside the state, too. Semicon West, a noted biennial microelectronics exhibition and conference, has drawn industry professionals to San Francisco for more than 50 years. But starting in 2025, it will be held in Phoenix through 2030, popping up at the Phoenix Convention Center in 2027 and 2029.
“Semi is excited to bring Semicon West to Phoenix, a booming semiconductor manufacturing hub, in October 2025,” said Joe Stockunas, president of Semi Americas, which hosts the exhibition and conference. “Greater Phoenix is home to more than 75 semiconductor companies including Semi members EMD Electronics, Intel, and [TSMC], and the sector employs more than 100,000 with more jobs on the way. As recent investments in chip manufacturing in the area have made abundantly clear, Phoenix embodies the drive by SEMI and the industry at large toward greater innovation.”
TSMC Arizona is proud of its effort to make the United States a leader in semiconductor manufacturing and is excited to see its industry partners thrive.
“We are honored to support our customers who have been pioneers in mobile, artificial intelligence, and high-performance computing, whether in chip design, hardware systems or software, algorithms, and large language models,” said Wei. “They are the innovators driving demand for the most advanced silicon that TSMC can provide. As their foundry partner, we will help them unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona. We are thrilled by the progress of our Arizona site to date and are committed to its long-term success.”
*The San Francisco Weekly newsroom and editorial were not involved in the creation of this content.
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