Taiwan Semiconductor Manufacturing Corp (TSMC) plans to invest $40 billion in Phoenix, Arizona, to expand its semiconductor manufacturing capabilities, with a new facility expected to create approximately 6,000 jobs. The investment follows a historic announcement in May 2020, where TSMC initially committed to a $12 billion investment, now reaching over $65 billion total, making it the largest foreign direct investment in Arizona history.
The first of the three planned fabs will utilize leading-edge semiconductor process technology, starting production in the first half of 2025, while the second and third fabs are set to operationalize by 2028 and the end of the decade, respectively. TSMC’s expansion aims to bolster U.S. semiconductor manufacturing amidst global supply chain concerns.
This investment is particularly significant as TSMC remains a critical player in the semiconductor industry, providing components for over 12,000 products used by more than 500 companies, including major technologies in AI, smartphones, and automotive sectors.
