A chip-making powerhouse is eyeing a second multibillion-dollar expansion right here in the Valley.
Audrey Jensen, an economic development and commercial real estate reporter with the Phoenix Business Journal, says Taiwan Semiconductor Manufacturing Company’s (TSMC) investment is a huge deal for the U.S. and Arizona.
“Just the first phase of TSMC is the state’s biggest foreign direct investment. At full buildout, TSMC is expected to invest $35 billion,” she added.
Taiwan Semiconductor Manufacturing Company or TSMC is now considering a second investment in Arizona, following its initial $12B one with the first factory of its semiconductor manufacturing plant in north Phoenix.
The company tells ABC15 the new project could potentially serve as a second factory, sitting next to the existing one TSMC committed to in 2020.
“They’re one of the biggest makers of chips or semiconductors, which basically power a lot of the technology and devices that we use; such as cars, phones,” Jensen told ABC15.
Arizona already has a semiconductor ecosystem with Intel, who’s been here for decades, making our state a good fit.
Jensen says TSMC’s plans will open up thousands of jobs here and attract other suppliers or companies that use the chips.
“So obviously that means thousands of more jobs, in addition to what TSMC is adding. It’s hundreds of millions, if not billions of dollars more investment into the economy,” said Jensen.
As for water consumption…
“We do know, at full buildout, they could be using billions of gallons of water,” she said.
Though Jensen says 65% of its water will come from an in-house reclamation system to reduce reliance on city water.
Sarah Porter, the Director of the Kyl Center for Water Policy at ASU’s Morrison Institute for Public Policy, says while TSMC will be using a lot of water, the loss isn’t extensive.
“So that plant itself can reclaim the water or the water can be put into the wastewater treatment system managed by the City of Phoenix. And the City of Phoenix is reclaiming 93% of the water that enters the municipal treatment system. So it doesn’t result in a net loss of water in the way that it might appear,” Porter told ABC15.
Porter says Phoenix and other Valley cities have built their water portfolio, through the years, to be able to support a factory like TSMC without affecting residents.
“It won’t affect our water supply at all,” Porter added.
As for power…
“In the first phase, APS has said that it’s going to use 200 megawatts of power, which is equivalent to powering 30,000 homes in Arizona,” said Jensen.
Adding that Arizona Public Service or APS is also building more substations to support TSMC’s first phase.
Here is TSMC’S full statement to ABC15:
“TSMC is now constructing a building to potentially serve as a second fab at our site in Arizona, leveraging resources from construction of our first fab for greater cost effectiveness. This building enables us to remain flexible for future expansion, but we have not arrived on a final decision on a second fab. In light of the strong customer demand we are seeing in TSMC’s advanced technology, we will consider adding more capacity in Arizona with a second fab based on operating efficiency and cost economic considerations.”
