In 2020, TSMC Arizona committed to investing in the United States semiconductor sector to the tune of $12 billion. By 2024, that commitment swelled to $65 billion, all focused in Phoenix, where the industry leader is building three leading-edge semiconductor production fabrications or facilities. It's the largest foreign direct investment in a greenfield project in Arizona (and in the nation's history), and it's quickly transforming Phoenix into a chipmaking hub.
The investment comes as the company partners with the United States government in a unified mission to increase production of the semiconductor chips that power the world's most advanced products and systems. Last November, the U.S. Department of Commerce revealed a $6.6 billion grant agreement with TSMC Arizona via the CHIPS and Science Act, a 2022 bill that incentivizes the production of semiconductors in the United States.
It turns out TSMC Arizona's commitment to the state is contagious, as other companies are now flocking to Arizona in their own bids to invest in its computing infrastructure and job market.
Partnerships and Pipelines
TSMC Arizona didn't simply agree to build plants in the state. It also agreed to create programming and partnerships that foster sustainable growth beyond the confines of its 1,129-acre North Phoenix campus. It will earmark at least $15 million in additional funds to support community investment and workforce development, which includes science, technology, engineering, and mathematics programs for students from kindergarten through 12th grade, particularly for those in underresourced communities.
TSMC Arizona has also joined forces with local colleges and universities to launch robust apprenticeship and internship programs so that local students will have the skills and opportunities they need to embark on long careers in the technology sector. The result: a symbiotic relationship that creates pipelines for semiconductor technicians and engineers who might not have previously had a chance to enter the field.
New Opportunities
One of TSMC Arizona's widest-ranging partnerships is with Arizona State University. In 2023, they formalized their union via a partnership agreement that paved the way for expanding their joint capacity to offer classes, fellowships, and research opportunities; expanding the ASU to TSMC Arizona talent pipeline; creating more courses to serve non-degree-seeking professionals; and supporting student and faculty research.
"This partnership between TSMC and ASU reflects the region's dedication to fulfilling the workforce needs of the entire semiconductor ecosystem as we become an international center for the industry," says Chris Camacho, president and CEO of the Greater Phoenix Economic Council.
It has also led to additional opportunities for ASU. The school was recently selected to house a national facility for semiconductor advanced packaging, as supported by the CHIPS and Science Act. Called the Southwest Advanced Prototyping Hub, it's one of eight regional innovation hubs established via the U.S. Department of Defense's Microelectronics Commons. This strategic initiative aims to accelerate the development and production of the microelectronics technologies that are critical to U.S. security and defense.
As the SWAP Hub lead, ASU and its students are well positioned to engage with other tech stakeholders who have flocked to the area in the years since TSMC Arizona touched down, including other semiconductor manufacturers, defense firms, national research labs, and innovative startups.
Facilitating Research and Development
But that's not the only new initiative sparked by TSMC Arizona's presence in the state. In January 2025, the Arizona Commerce Authority announced that the U.S. Commerce Department and Natcast, which operates the National Semiconductor Technology Center, will build the third of three CHIPS for America research and development flagship facilities in Arizona.
Dubbed the NSTC Prototyping and National Advanced Packaging Manufacturing Program advanced packaging piloting facility, it will be located at the ASU Research Park in Tempe, Arizona. The new facility will combine 300-millimeter semiconductor research and prototyping for front-end manufacturing and packaging capabilities, providing a solution for the U.S. semiconductor ecosystem's need for more advanced packaging R&D.
It is slated to go live in the fourth quarter of 2028, and it will bring with it billions of dollars in investment and hundreds of new local jobs. Plus, it will support U.S. workforce development efforts as a whole, as it offers opportunities for hands-on, collaborative research using industry-leading equipment.
"The CHIPS R&D project will create a national lab that will be the final piece in a semiconductor supply chain that serves the nation with research and development, manufacturing, and workforce development all right here in Arizona," ASU President Michael Crow said. "You'll have all three things together in the same place to help the nation; Arizona will be the hub nationally—and ASU is at the center of the hub."
TSMC Arizona sees the new facility as a natural outgrowth of its commitment to the state. "This announcement is tremendous news for our industry as we begin a new year. Natcast's decision to locate the NSTC Prototyping and NAPMP advanced packaging piloting facility in Arizona is one that will have wide-ranging positive benefits well beyond 2025," said Rose Castanares, president of TSMC Arizona.
"Arizona's semiconductor footprint is rapidly expanding, and its leadership in both cutting-edge manufacturing and advanced packaging provides a one-of-a-kind opportunity to accelerate research and innovation. With our historic $65 billion investment, TSMC Arizona is deeply committed to our U.S. operation, and we look forward to collaborating with industry peers, research leaders, and Natcast on its advanced packaging priorities."
State leaders are also excited about what's to come. "Today's announcement solidifies Arizona's position as a global hub for advanced manufacturing and innovation," said Arizona Gov. Katie Hobbs. "This flagship facility will serve as an anchor for Arizona's thriving semiconductor ecosystem while supporting R&D and supply chain resiliency nationwide. This investment ensures the next generation of this critical, leading-edge technology is developed here in Arizona, while we support the workforce and jobs of the future."
The Future Is Now
And the jobs are coming. In the years since TSMC Arizona's initial commitment, other players in the semiconductor industry have announced more than 40 expansions in the state, creating thousands of well-paying positions in a sector that is only poised to grow.
They include large fabrication facilities like the two Intel is building in Chandler, Arizona, as well as smaller companies in the semiconductor supply chain, from chemical manufacturers to packagers and transportation providers. TSMC Arizona partner Amkor is building a $2 billion packaging and testing facility in Peoria, Arizona. Meanwhile, Fujifilm is adding an $88 million expansion to Mesa, Arizona. And Sunlit Chemical will build a $100 million plant in north Phoenix.
TSMC Arizona is eager to work with them, particularly companies owned by women, people of color, and veterans. To that end, it will set annual goals for spending with them, develop and implement a training program to increase supplier diversity and small-business investment and maintain web pages that outline the opportunities sprouting up in the state.
The result is a robust semiconductor manufacturing ecosystem anchored by TSMC Arizona. "I'm excited about the impacts of the semiconductor sector and going forward, Arizona is gonna continue to be known as semiconductor central," says Camacho. "I don't know of a period in time where we've seen this kind of intense investment and job creation in our state."
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