TSMC Arizona Fabs To Generate $10 Billion Yearly, Create 10,000 Jobs

One of the largest foreign direct investments in the history of the United States is underway in Arizona at TSMC’s location for multiple chip fabs.

TSMC, the world’s largest contract chip manufacturer announced that in addition to its first fab in Arizona, which is scheduled to begin production of N4 process technology in 2024, it has also started the construction of a second fab – scheduled to begin production of 3nm process technology in 2026.

Last month TSMC confirmed that it was already constructing a building that could serve as its second chip factory in Arizona in the United States. Then it emerged this week that TSMC would more than triple its investment to $40 billion in the location.

Arizona fabs

TSMC on Tuesday confirmed the overall investment for these two fabs will be approximately $40 billion, representing the largest foreign direct investment in Arizona history and one of the largest foreign direct investments in the history of the United States.

In addition to the over 10,000 construction workers who helped with construction of the site, TSMC Arizona’s two fabs are expected to create an additional 10,000 high-paying high-tech jobs, including 4,500 direct TSMC jobs.

When complete, TSMC Arizona’s two fabs will manufacture over 600,000 wafers per year, with estimated end-product value of more than $40 billion.

And the new fabs are being designed to be as green as possible, in line with TSMC’s commitment to green manufacturing.

TSMC Arizona is in the planning stages for an on-site Industrial Water Reclamation Plant that when finished, will allow the TSMC Arizona site to achieve near zero liquid discharge.

“When complete, TSMC Arizona aims be the greenest semiconductor manufacturing facility in the United States producing the most advanced semiconductor process technology in the country, enabling next generation high-performance and low-power computing products for years to come,” said TSMC Chairman Dr Mark Liu.

“When completed with both fabs, we will manufacture over 600,000 wafers a year, representing $10 billion in yearly revenue,” said Dr Liu. He added that customers using those chips would have annual sales of over $40 billion.

Tool in ceremony

The announcements were made at TSMC’s opening ceremony to celebrate the first batch of state of-the-art semiconductor manufacturing equipment arriving at TSMC Arizona.

The event took place in Phoenix, Arizona and besides TSMC Founder Dr. Morris Chang, TSMC Chairman Dr. Mark Liu, and TSMC CEO Dr. CC Wei, other notable guests of the event included President Joe Biden.

Other officials and executives included Department of Commerce Secretary Gina Raimondo, Arizona State Governor Doug Ducey, Phoenix City Mayor Kate Gallego, Apple CEO Tim Cook, AMD Chair and CEO Dr. Lisa Su and Nvidia President and CEO Jensen Huang.

“This facility is an incredible testament to global collaboration, to TSMC’s ingenuity, and it is an important milestone for advanced manufacturing in America,” said Apple CEO Tim Cook. “The innovation in Apple Silicon has transformed our devices and we are proud to become TSMC’s largest customer at their new Arizona site.”

TSMC manufactures the bulk of its chips in Taiwan, and has older chip facilities in China and Washington state.

It announced back in 2020 that it would be building a $12bn chipmaking plant in Arizona, construction of which began in 2021.