Taiwan Semiconductor’s Phoenix Plant Likely Three Times Larger Than Originally Announced
Taiwan Semiconductor Manufacturing Co. Ltd.’s planned Phoenix manufacturing plant will likely be three times larger than was originally announced.
The cost to build the manufacturing facility is likely to be closer to $35 billion, nearly triple the $12 billion first announced, according to sources with knowledge of the deal and Asian media reports. Media reports describe the Arizona plant as a “mega site” that would include six factories.
City of Phoenix documents suggest that the project will be built in multiple phases, with the first phase totaling about 3.8 million square feet of semiconductor manufacturing facilities as well as administrative and other support facilities. TSMC bought 1,128 acres in north Phoenix in December for the plant.
The land TSMC bought at a state land auction was part of a larger piece of state-owned property that the city of Phoenix had rezoned for employment purposes. At the time TSMC bought its land, city officials said the surrounding area would likely attract companies with a similar mission wanting to work alongside TSMC.
TSMC has already begun hiring for its Arizona plant. According to a website launched by the company, it is working to attract entry-level engineers and talent from both inside and outside Arizona.
“And we wanted to locate the new fab in an area that delivers a lifestyle that would attract talent from outside of Arizona,” the job posting website says. “Because the Arizona fab will ultimately employ well over 1,000 engineers, we need to go beyond tapping the existing Arizona workforce.”
Construction on TSMC’s facility is expected to break ground this year and be operational by 2024.
Four Asian suppliers also have announced plans to follow TSMC to Arizona.
LCY Chemical, a chemical producer for semiconductors, is reportedly planning a new plant in Arizona, according to Japanese financial newspaper Nikkei Asia. The Taiwan-based company manufactures isopropyl alcohol, which is used for cleaning wafers and equipment in the manufacturing process for semiconductors.
Taiwanese media reported late last year that Chang Chun Petrochemical Co. Ltd., United Integrated Services Co. Ltd. and Mirle Automation Corp. were planning to build facilities in Arizona to support Taiwan.