By Audrey Jensen | Phoenix Business Journal
A Wall Street Journal report said Wednesday that chip giant Taiwan Semiconductor Manufacturing Co. could be planning a multibillion-dollar expansion in Phoenix in addition to what’s it’s already planning to build.
TSMC plans to announce in the coming months that it will build a “cutting-edge” semiconductor factory, or fab, north of Phoenix, according to people who spoke with the Wall Street Journal and are familiar with the expansion plans.
The investment is also expected to be similar to the initial $12 billion that the company committed to two years ago, the report said. The expanded facility would manufacture 3-nanometer transistors, which the report said are some of the tiniest and lightning-fast currently possible.
The Phoenix Business Journal reported last year that TSMC’s first phase, which was announced in late 2020, will be worth $12 billion, and that the final investment in the facility, now under construction, will be even larger, potentially worth about $35 billion. The first phase of that fab is the largest foreign direct investment in the state’s history.
TSMC said in a statement to the Phoenix Business Journal that TSMC is now constructing a building to serve as a second fab at its Arizona site, leveraging resources from construction of its 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,” a spokesperson for TSMC said in an emailed response.
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