Phoenix Okays Development Deal With TSMC For $12 Billion Chip Factory: Report

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  • In May, TSMC had disclosed its intentions to build a 5-nanometer chip factory in Arizona, which would be its first advanced manufacturing facility in the United States
  • Under the agreement, TSMC will build a new factory and create 1,900 new full-time jobs to be phased in over a five-year period
Image Source – Taiwan Semiconductor Manufacturing Company

As per a report by Reuters, city officials in Phoenix, Arizona have unanimously voted to authorize a development agreement with chipmaker Taiwan Semiconductor Manufacturing Co. This would provide $205 million in city funds for infrastructure such as roads and water improvements for a planned $12 billion semiconductor factory in the city

In May, TSMC had disclosed its intentions to build a 5-nanometer chip factory in Arizona, which would be its first advanced manufacturing facility in the United States. The report added that earlier this month, it approved an investment to set up a wholly owned subsidiary in the U.S. state with paid-in capital of $3.5 billion.

Factory production is expected in 2024

The report added that under the agreement, TSMC will build a new factory and create 1,900 new full-time jobs to be phased in over a five-year period. The construction will would start in early 2021 and factory production is expected in 2024.

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The report added that in return, the city will build three miles of streets for $61 million, spend $37 million on water infrastructure improvements and $107 million in wastewater improvements. The company will enter a formal deal with the city after selecting a site, which is expected before the end of the year.

In June, American lawmakers proposed billions of dollars in subsides to help bolster advanced semiconductor manufacturing in the United States. This could help both TSMC as well as U.S. firms such as Intel Corp and Micron Technology Inc added the report.

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