Over the last decade, both President Trump and former President Biden have made concerted efforts to bolster semiconductor manufacturing in the United States. The administrations have agreed: Onshoring the semiconductor supply chain is paramount for the country’s growth.
These efforts have coalesced in Greater Phoenix, where a hub of advanced manufacturing is taking shape alongside TSMC Arizona’s historic $165 billion investment into the state.
"This expansion energizes innovation that fosters more economic growth, opportunities for skilled workers, and positions the Phoenix region at the forefront of advanced manufacturing," said Phoenix Mayor Kate Gallego (March 2025, via GPEC)
It’s a new way to scale, as TSMC has now made the largest foreign direct investment (FDI) in the nation’s history. First announced as a $12B investment in May 2020, the Taiwanese semiconductor giant later increased its investment to $65 billion in March 2024, then tripled down 11 months later with an additional $100 billion investment. This will fund six chip fabrication (fab) facilities, two advanced packaging facilities, and a research and development center.
The first fab started high-volume production of chips in late 2024 the second fab is targeted for volume production by the second half of 2027 and the third fab by 2030. Additionally, TSMC Arizona is building a 15-acre Industrial Reclamation Water Plant designed to recycle 90% of all water consumed.
In 2025, TSMC’s Chairman and CEO CC Wei shared that when the operation reaches the full build out from the $165B investment, approximately 30% of the company’s 2-nanometer and more advanced capacity will be located in Phoenix, creating an independent leading-edge semiconductor manufacturing cluster in the United States.
Semiconductor chips power electronics around the world (and out of this world), ranging from aerospace technologies to cellphones. However, the production of chips has historically been fragmented at a global scale. For example, a chip may be produced at TSMC’s primary international hub in Taiwan, at Intel in Chandler, or at NXP in the Netherlands. But now, with the supply chain growing in Greater Phoenix, the U.S. has a new advantage: a comprehensive supply chain localized in a region.
America's Most Comprehensive Semiconductor Supply Chain
TSMC Arizona has created a ripple effect across the U.S. semiconductor supply chain. Since TSMC’s announcement, about 50 semiconductor companies have announced plans to move into Greater Phoenix, creating thousands of jobs and accelerating growth of the industry. This ranges from chipmaking at TSMC, to advanced packaging and testing at Amkor, to the chemical manufacturing of Sunlit Chemicals. Additionally, Arizona State University has increased its research capacity through initiatives like its MacroTechnology Works program to further U.S. innovation.
With this circular economy, the localized production will decrease costs and environmental impacts while increasing speeds of production.
The city of Phoenix has also considered the planning necessary to foster a semiconductor ecosystem anchored by TSMC Arizona. It looked to Hsinchu City, home of TSMC headquarters and the Hsinchu Science Park, which houses hundreds of companies and has established tight-knit operations between industry partners.
Mack Real Estate Group and McCourt Partners acquired 2300 acres of land surrounding TSMC’s Phoenix campus. Billed as Halo Vista and often referred to as a “city within a city,” it will include 30 million square feet of mixed-use space to suit the needs of industrial, office, retail, residential, education and more. A research and technology park is included in the master planning for Halo Vista.
“Our manufacturing excellence can be repeated in the U.S. It’s very meaningful for ourselves, and it’s also very meaningful for our customers," said TSMC CFO Wendell Huang (Jan. 2026, via CNBC)
PulteGroup, in partnership with TSMC Arizona, led an effort in 2025 to rezone 7,400 acres of land just south of TSMC and the Loop 303 dubbed NorthPark, a master-planned development that will include thousands of housing units and land for retail, business parks, restaurants and office space. It also includes a historical allocation of 2,100 acres of open preserve land. Early in 2026, TSMC Arizona acquired via auction 900 acres of land within NorthPark to support its planned expansion.
With dedicated land for related activity and needed housing, TSMC’s American investment is unprecedented. Companies within the industry will have opportunity to be a part of this robust ecosystem, and the workforce will be able to live as close as they’d like, with amenities to support residential growth. TSMC isn’t just scaling. TSMC is recalibrating the future of America’s semiconductor industry.
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