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TSMC buys land in north Phoenix for US$89 million

TSMC announced in May it plans to spend US$12 billion on an advanced 5-nanometer fab in Arizona

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TSMC Tainan office building (Reuters photo)

TSMC Tainan office building (Reuters photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) purchased a large piece of land in north Phoenix for a planned semiconductor plant last Wednesday (Dec. 9) at a state land auction.

TSMC’s US$89 million bid was the only one received by Arizona at an auction for a 1,129-acre tract of undeveloped land off Interstate 17, according to AZ Central. The auction made the location of the future facility public, which TSMC had previously kept quiet since May, when the project was first announced.

TSMC has said it plans to spend US$12 billion on an advanced 5-nanometer fab, which is expected to begin construction in 2021, with chip production slated to start by 2024. The company has said the new factory will create 1,900 full-time jobs over a five-year period.

Phoenix was able to secure the deal after Mayor Kate Gallego and Chris Mackay, the city’s economic development director, visited Taiwan last year to pitch the city to TSMC, AZ Central reported. To assist in the project, the Phoenix City Council on Nov. 18 voted to move forward with an agreement that committed the city to spend US$205 million on infrastructure to connect the city to the site, including US$62 million for streets, US$37 million for water infrastructure, and US$107 million on wastewater improvements.

Phoenix is still working with TSMC to finalize the development deal. TSMC has also said that it hopes U.S. federal subsidies will help cover the extra costs of manufacturing chips in America. Once the plant is completed, it is expected to use 12-inch wafers and have a production goal of 20,000 wafers per month.


Updated : 2021-05-13 07:23 GMT+08:00