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Governor Ducey, TSMC Mark Major Milestone at the Most Technologically Advanced Chip Factory in the U.S.

“Deal of the Decade” Highlights Arizona as a Global Technology Epicenter

PHOENIX — A vision to transform acres of state-owned desert into a global technology epicenter marked a major milestone today: Governor Doug Ducey and TSMC celebrated the first piece of equipment added to one of the most technologically advanced chip factories in the world.

If the years-long effort to bring the high-tech chip manufacturing operation to Arizona wasn’t already the “deal of the decade,” TSMC’s announcement that it would add a second fab, invest a total of $40 billion and create 4,500 jobs at its Arizona operations certainly seals the deal.

President Joe Biden, U.S. Commerce Secretary Gina Raimondo, Governor-elect Katie Hobbs, Phoenix Mayor Kate Gallego, members of Arizona’s congressional delegation, TSMC Chairman Dr. Mark Liu and TSMC Founder Dr. Morris Chang were among the dignitaries who joined Governor Ducey at today’s event.

“It’s a special day to see this vision take shape,” said Governor Ducey at the newly constructed factory in North Phoenix. “When TSMC set out to build its new high-tech fab, they had all 50 states to choose from. They chose Arizona because of our robust and growing talent pool, unbeatable business environment, and unparalleled quality of life. As the U.S. semiconductor industry continues to advance in the years ahead, Arizona will be the engine powering its growth.”

In 2020, Governor Ducey announced TSMC selected Arizona for its new U.S. advanced semiconductor facility – the largest foreign investment in state history. 

“We are gathered here under the beautiful Arizona sky celebrating a historic milestone,” said Dr.  Mark Liu, at the event. “This is a milestone for TSMC, for the state of Arizona, and for the semiconductor industry in the U.S. We are well on our way to building the most advanced semiconductor technology in the United States right here in the great state of Arizona. This fab is historic. We will produce the most advanced semiconductor chip at 4 nanometers when it goes into production in 2024. It will power the innovations that will improve every aspect of your life.”

Dr. Liu continued, “It will also represent the largest foreign direct investments in Arizona history. We want to especially recognize the exceptional hard work of Sec. Raimondo, Governor Ducey, Sen. Kelly and Sen. Sinema.”

On the heels of the successful CHIPS legislation to bring manufacturing back to U.S. soil, Sec. Raimondo said, “This investment in Arizona and future investments are going to transform Arizona’s semiconductor industry.” 

She emphasized, “The cutting edge chips that are going to be produced right here in Arizona will be more advanced than any other chips that have ever been manufactured on U.S. soil.“

A major customer of TSMC is Apple, which recently announced it would purchase chips made in Arizona. CEO Tim Cook spoke at the event.

“I would like to thank Sec. Raimondo, Governor Ducey, Governor-elect Hobbs and Sen. Kelly for your leadership. This is an incredibly exciting day for America, for Arizona and for Apple. Today is only the beginning. Today, we are combining TSMC’s expertise with the unrivaled ingenuity of American workers. We are investing in a stronger, brighter future. We are planting a seed in the Arizona desert. And at Apple, we are proud to contribute to its growth.”

Governor Ducey emphasized the tremendous impact of the project, “We knew that TSMC’s project would be transformational for our state, and that’s even more evident today. The legacy of this project can’t be understated. Not only will it create thousands of jobs, it has positioned Arizona as a global leader for state-of-the-art semiconductor manufacturing operations.”

“I would like to thank Chairman Liu, Dr. Chang and TSMC, as well as the many partners who made this project possible. Arizona looks forward to a long and prosperous relationship with TSMC for many years to come,” said the governor.

The facility will utilize TSMC’s 4-nanometer technology for semiconductor wafer fabrication. The second, newly announced fab will be equipped for 3 nanometer production by 2026. There will be a combined annual capacity of 600,000 wafers a year. 

TSMC’s consequential presence continues to build Arizona’s hub of semiconductor operations, bringing suppliers such as Sunlit Chemical, Chang Chun, Kanto PPC, LYC Chemical, United Integrated Services and more. To date, the total investment from supplier companies exceeds $1 billion. TSMC’s investment will also create more than 13,000 jobs at supplier companies.

Those newly formed partnerships were on full display when the governor traveled to Taiwan in August and sat down with not just TSMC, but many suppliers as well.  

Global leaders know Arizona offers the premier environment for advanced manufacturing. Intel, NXP, On Semiconductor, Microchip, Benchmark Electronics and more have all recently announced expansions in Arizona.

Last month Governor Ducey announced a historic $100 million investment in Arizona’s fast-growing semiconductor industry to spur greater growth in a critical sector of the state’s economy.