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"The Silicon Desert"
Arizona has a long-established history of high-tech manufacturing stretching back decades. The greater Phoenix metropolitan area is home to many companies in the semiconductor, hardware, software, engineering, manufacturing, research and development, and aerospace industries. Some of the top companies that have chosen to locate in the Phoenix region include:
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A New Corridor for Semiconductor Manufacturing
In 2020, Taiwan Semiconductor Manufacturing Company (TSMC) announced the purchase of an 1,129 acre parcel of undeveloped land in north Phoenix, Arizona. The land was purchased for $89 million at a state land auction. Phoenix City Council approved a development deal that includes city investment in infrastructure improvements such as water, wastewater, and streets to the site.
Initially, the company announced plans to build a $12 billion chipmaking facility that would create 1,900 full-time jobs over a five-year period. The goal was to produce 12-inch silicon wafers at a rate of 20,000 wafers per month. The factory broke ground in 2021 and is anticipated to begin chip production in Arizona in 2024.
In late 2022, TSMC announced its commitment to build a second fab in Phoenix, increasing its total investment in Arizona to $40B.
In April 2024, another big announcement was made by TSMC and the U.S. Department of Commerce. TSMC announced plans to build a third fab facility, or chip manufacturing facility, at the site, supported by US$6.6 billion in direct funding under the CHIPS and Science Act.
This brings TSMC’s total U.S. investment to more than $65 billion, making this the largest foreign direct investment (FDI) in Arizona history, and the largest foreign investment in completely new projects in U.S. history.
When will TSMC begin semiconductor production in Arizona?
According to The Arizona Republic, the first fab or factory, announced in 2021, will start producing chips during the first half of 2025. The second fab will come online by 2028, and the third fab before the end of the decade.
About Taiwan Semiconductor Manufacturing Company (TSMC)
Taiwan Semiconductor Manufacturing Company (TSMC) was founded in 1987 in Taiwan, an island country located in the South China Sea approximately 110 miles from mainland China. In 1997, the company became the first Taiwanese company to be listed on the New York Stock Exchange.
The company has grown to more than 51,000 employees as of 2019 and has offices in China, Europe, India, Japan, South Korea, and North America. As of 2020, TSMC has fourteen fabrication facilities worldwide, and a global production of 13 million wafers per year.
TSMC is a supplier to many top-tier global manufacturers including AMD, Apple, ARM, Broadcom, Marvell, MediaTek, Nvidia, and Qualcomm, among others. They are among the 10 largest chipmakers in the world, alongside rivals Intel and Samsung. By some reports, the company has a market share of 55.6% of the global semiconductor foundry market.
TSMC's Corporate Headquarters in Hsinchu Science Park, Taiwan
Located 10 Minutes from Vistancia Technology Park
The Vistancia Technology Park is ready for the future of tech and smart manufacturing in Greater Phoenix. Located in the award-winning Vistancia master-planned community, the Vistancia Technology Park is a shovel-ready site that can accommodate a wide variety of users. Vistancia is at the center of the northwest Greater Phoenix region and is a prime location for businesses looking to find a successful business environment. The new TSMC campus is located within 10 minutes of Vistancia, enabling suppliers to be a part of a growing tech hub in the northern Greater Phoenix region.
The Vistancia Technology Park is a part of the larger FIVE NORTH at VISTANCIA development area. This area is envisioned to include Class A office space, a business hotel, signature retail, multi-family residential, and exciting dining and entertainment options. It is an ideal location for campus users that want to create a vibrant business hub for their employees and guests.
Amkor Technology Announces Historic $2 Billion Investment In Peoria, Arizona
In February 2024, Tempe, Arizona-based Amkor Technology announced plans to build a new semiconductor packaging and test facility in Peoria, Arizona. The project is a $2 billion investment, which is the largest in Peoria's history, and is anticipated to create 2,000 jobs. The facility will be located on a 55 acre parcel within the FIVE NORTH at VISTANCIA development area. Upon completion, this will be the largest outsourced advanced packaging and test facility in the United States.
Read More About Amkor's Investment in Peoria
Be Part of the Future of Chipmaking in Peoria
Do you have a business in the chipmaking or advanced manufacturing industry? You could locate in Peoria and join this rapidly-growing corridor of high-tech manufacturing. Don't miss out!
Download Now:
Vistancia Technology Park Brochure (PDF)
Sites for the Semiconductor Industry Brochure (PDF)
Contact Us to receive your copy of the Semiconductor Sites Brochure
Contact Peoria Economic Development at (623) 773-7735 to learn more