Written by Rachel Benoit
On March 3, President Donald Trump and C.C. Wei, the CEO of the Taiwan Semiconductor Manufacturing Company (TSMC), unveiled a monumental $100 billion expansion of its North Phoenix campus, bringing its total Arizona investment to $165 billion – the most significant foreign direct investment in U.S. history. This investment will double the number of fabrication facilities (FABs) currently under construction, add two advanced packaging facilities, and establish a new research and development center focused on creating cutting-edge semiconductor chips.
The announcement came just weeks prior to the announcement of sweeping tariffs on all imports, including from Taiwan, leaving some to question whether or not the Trump administration is pushing TSMC to bring more of their operations to US soil. With the announcement of TSMC’s first quarter financial reports showing higher than expected profits, it does not yet appear that the tariffs have damped the demand enough for TSMC to truly consider shifting their operations.
With major players such as Apple, Nvidia, and AMD already purchasing chips from the North Phoenix campus, it is guaranteed that demand will not be declining anytime soon. Earlier this year, the campus began production of four-nanometer chips with a goal to begin producing the higher-quality three-nanometer chips by the end of 2028. As the world of artificial intelligence rapidly progresses, the need for smaller and more sophisticated chip wafers increases, so the R&D unit in North Phoenix will be dedicated to developing a two-nanometer chip by the end of the decade – a product that has only been created by one other semiconductor manufacturer previously. Despite having another major semiconductor manufacturer – Intel – located less than fifty miles away, representatives from TSMC have stated that there is little chance the two companies will form a joint venture, instead believing that TSMC has the potential to create the highest-quality chips within their own company. So, what does this mean for the Phoenix job market and are there any opportunities for Thunderbird students to reap the benefits of such a large investment? With the additional investment, TSMC is expected to bring tens of thousands of jobs, ranging from engineers to technicians, to the Phoenix ecosystem. To ensure students are prepared for the vast opportunity arising from this expansion, ASU and TSMC partnered to provide students with the necessary skills and ability to practice them firsthand through both internships and a Master’s Fellowship Program.
Beyond the jobs directly created from TSMC, there will be a rapid expansion of opportunities in a variety of sectors in North Phoenix after this announcement. A local real estate group – Mack Real Estate Group – has also announced plans to build a 3,500-acre corridor surrounding TSMC’s campus, which they’ve named Halo Vista. This massive swath of land will be divided into a manufacturing district as well as a research and development district named the Sonoran Oasis Research and Technology Park. Whether you have an interest in chip production or not, one thing is clear: this investment was monumental for the Phoenix business ecosystem and is expected to transform the city into a major global player in chip production and more.
