Semiconductor factory plans to expand in northwest Phoenix

The Taiwan Semiconductor Manufacturing (TSMC) plant in northwest Phoenix recently announced it would be adding a factory, resulting in three total factories in northwest Phoenix. TSMC received a $6.6 billion grant from the Federal CHIPS and Science Act to support their expansion efforts.

The mission behind the additional factory is to increase national security by improving domestic semiconductor production and supply chains.

The Biden administration grant supports the foremost producer of state-of-the-art microchips. This initiative aims to facilitate the transfer of cutting-edge semiconductor technology to the U.S.

In 2022, lawmakers enacted the CHIPS and Science Act, providing the Commerce Department with $39 billion to disburse as subsidies aimed at encouraging companies to construct and enhance chip manufacturing facilities throughout the U.S. This program is said to show a significant component of President Biden’s economic policy strategy, which prioritizes increasing American manufacturing capabilities.

According to Dale Rogers, Professor of Business at W. P. Carey School of Business at ASU, TSMC decided to expand the company footprint here in Arizona due to Phoenix having the cheapest cost of water, which is a key component in making semiconductors.

In recent years, there have been concerns regarding supply chain issues impacting the world of technology, which may evolve into old forms of technology coming back, Rogers said.