PHOENIX — In north Phoenix, it's impossible to miss the area under construction as you drive along Interstate 17 near the exit to Loop 303.
The Taiwan Semiconductor Manufacturing Company's $12-billion chip plant is taking shape.
On Tuesday, with President Joe Biden in attendance, TSMC announced phase two, increasing the company's investment in Arizona to $40 billion.
This will make it the single largest private investment ever in Arizona and one of the largest foreign direct investments in U.S. history.
TSMC also announced a plan to build a second facility that will produce advanced 3-nanometer (nm) chips by 2026.
The company announced its plans to develop even more cutting-edge chips than originally proposed at its current facility under construction, going from 5 nanometers down to 4 nanometers.
These semiconductors are pivotal to the nation's supply chains, as the pandemic exposed.
During his remarks, the President discussed how TSMC’s new investments in Phoenix are a result of his economic plan – including the CHIPS and Science Act, and his commitment to addressing the economic and national security concerns of not producing lead-edge semiconductors in the U.S.
The arrival of TSMC to Phoenix was years in the making.
Representatives from TSMC and Taiwan met with Governor Doug Ducey and Sandra Watson, the CEO of the Arizona Commerce Authority in 2017.
Phoenix Mayor Kate Gallego's first international trip as mayor was to Taiwan.
When the deal was announced in 2020, the city projected the initial $12 billion investment would have an economic impact of $38.2 billion over 20 years.
The Greater Phoenix Economic Council said the plant is expected to create nearly 4,300 jobs over 10 years.
President Biden also discussed how his economic policies are helping small business owners, construction workers, engineers, senior citizens, and families across Maricopa County.
Two years ago, the Phoenix unemployment rate was 6.5%, over 9,000 Phoenix residents had filed for bankruptcy, and roughly one in six small businesses was permanently closing.
Today, the Phoenix area unemployment rate is down to 3.2%, while the overall Arizona economy grew by 6.3% in 2021 — the most in 16 years.
Companies are making investments across the state: last year Intel broke ground on a $20-billion semiconductor facility in the state, and KORE Power, a lithium-ion battery cell manufacturer, will soon break ground on a large-scale battery facility in Buckeye.
Executives from TSMC’s supplier base and customer base also attended the event, including Apple CEO Tim Cook, TSMC’s founder Morris Chang, Micron CEO Sanjay Mehrotra, NVIDIA CEO Jensen Huang, among others.
Secretary of Commerce Gina Raimondo, U.S. Senator Mark Kelly, and U.S. Representatives Ruben Gallego, Raul Grijalva and Tom O’Halleran, and Greg Stanton also attended the event. In addition, Governor Doug Ducey, Governor-elect Katie Hobbs, Phoenix Mayor Kate Gallego, and former U.S. Congresswoman Gabby Giffords attended.
RELATED: Gov. Ducey visits Taiwan, Republic of Korea to attract semiconductor industry to Arizona
The TSMC plant under construction is enormous by any measure: 5.6 million square feet.
According to APS, the plant will use 200 megawatts of power. It's the equivalent of powering 30,000 homes in Arizona.
The plant will also use a lot of water, but Sarah Porter, the Director of the Kyl Center for Water Policy at ASU's Morrison Institute for Public Policy, says water loss won't be extensive.
TSMC says 65% of its water will come from an in-house reclamation system which Porter says will reduce its reliance on City of Phoenix water.
