City officials in Phoenix, Arizona, on Wednesday approved a slate of financial incentives and government support for Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) planned US$12 billion chip plant, a step toward bringing high-tech manufacturing to the US and addressing national security concerns over the industry supply chain.
The city agreed to provide about US$200 million to develop roads, sewers and other infrastructure, according to a notice from the city council.
At least one additional set of traffic lights would be included for a cost of approximately US$500,000.
Photo: Cheng I-hwa / Bloomberg
The company is conducting due diligence on several locations in Phoenix with a final decision to be made later.
The decision to locate a plant in Arizona came after US President Donald Trump’s administration warned about the threat inherent in having much of the world’s electronics made outside of the US.
TSMC, the primary chipmaker for firms such as Apple Inc, had negotiated a deal with the administration to create US jobs and produce sensitive components domestically for national security reasons.
The Phoenix project is projected to create about 1,900 new jobs over five years, the company said.
“We appreciate the continuous bipartisan support from the US federal, state and city governments,” a spokeswoman for the company said. “It gives TSMC and its supply chain partners the confidence this and other future investments will be successful.”
TSMC in May said that the facility would utilize its 5-nanometer technology for 12-inch wafer fabrication and have a capacity of 20,000 semiconductor wafers per month, with construction of the plant scheduled to start next year and production to begin in 2024.
The company has said that it hoped to convince its own suppliers to set up operations in the vicinity of its new fabrication facility.
Chip giants Intel Corp and Micron Technology Inc already operate facilities in Arizona, and have helped build a vibrant local semiconductor industry over the years.
TSMC said that subsidies would be critical in setting up a fab in the US, given the additional expenses.
While Phoenix has approved its infrastructure spending, TSMC is still waiting on state and federal subsidies and incentives that could surpass by far the city’s expenditures.
The company would enter a formal deal with the city after selecting a site, which is expected before the end of the year, Reuters reported.
A representative for the city council declined to comment beyond statements in public documents.
“It is remarkable that this came to fruition during a pandemic,” Phoenix Mayor Kate Gallego said in a statement. “The payoff is huge. TSMC will create 1,900 high-tech jobs and foster thousands more related jobs in the semiconductor supply chain ecosystem.”
Additional reporting by CNA
Tesla Inc temporarily halted some production at its auto assembly plant in California because of problems with its supply chain, but work has begun to resume, CEO Elon Musk told employees in an e-mail on Thursday. “We are experiencing some parts supply issues, so took the opportunity to bring Fremont production down for a few days to do equipment upgrades and maintenance,” Musk said in an all-staff message seen by Bloomberg. The factory was “back up and running as of yesterday,” and would rapidly ramp up to full production of Model 3 and Model Y cars “over the next several days,”
PUNCTURE-PROOF: Air Fom tires are made of material used in sports shoe soles and offer a comfortable ride, although people are still skeptical about solid tires Getting a flat tire is a nightmare for cyclists, sending home early any rider who had ventured outdoors without a repair kit or spare inner tubes. Although punctured tires have long been a pain point for cyclists, the problem has never been effectively resolved, despite the bicycle industry going back centuries. A few products have been developed to help reduce the likelihood of flat tires: puncture-resistant tires, which are thicker than usual tires or come with a protective layer; anti-puncture tapes, which are placed between the tire and inner tube to offer extra protection; and tubeless systems that use sealant to close
LONG-TERM PLAN: The company expects growth in revenue from its automotive business this year and that it would contribute meaningfully to sales from 2023 Hon Hai Precision Industry Co’s (鴻海精密) new electric vehicle (EV) platform is expected to help launch vehicles later this year, chairman Young Liu (劉揚偉) said on Saturday, signifying major progress in the electronics giant’s push into the automotive industry. Two light vehicles designed using the company’s MIH Open Platform would be unveiled in the fourth quarter, Liu told reporters at the company’s headquarters in New Taipei City’s Tucheng District (土城). Hon Hai might at the same time also help launch an electric bus, he said. Hon Hai has been seeking to expand its automotive capabilities at a time when technology companies including
The production value of Taiwan’s semiconductor industry grew 20.9 percent year-on-year to NT$3.22 trillion (US$113.6 billion) last year, and it is expected to build on that performance this year, the Industrial Technology Research Institute’s (工研院) Industry, Science and Technology International Strategy Center said yesterday. The global semiconductor market grew 6.8 percent to US$440.4 billion last year, boosted by robust demand from the digital transformation and growing stay-at-home economy seen during the COVID-19 pandemic, the center said. That strength is likely to carry over to this year, leading to an 8.6 percent increase in domestic output to a new record NT$3.49 trillion,