12 things to know about expansion of $65B TSMC Phoenix semiconductor plant
Taiwan Semiconductor Manufacturing Co. will build a third chipmaking fab or factory in north Phoenix, spurred on by a grant worth up to $6.6 billion announced April 8 by the U.S. Commerce Department under the federal CHIPS and Science Act. All told, the company plans to invest $65 billion in Phoenix in a move that already is attracting suppliers and creating direct jobs at the company, along with thousands of construction positions.
Microchips power all sorts of electronic products. The Phoenix complex will start making the smallest microchips around — devices that will be increasingly needed in artificial intelligence, smart devices and other advanced applications. Here are answers to some key questions:
What exactly does TSMC do?
Since its founding in 1987, the company has become a dominant developer and producer of semiconductors or microchips, which are used to power all sorts of electronic devices found in vehicles, medical equipment, military weaponry, computers, cellphones and much more.
What's so special about TSMC's chips?
They are advanced in an age where users rely increasingly on cutting-edge computing. Smaller sizes allow manufacturers to pack more power into tinier spaces. Semiconductor measurements are expressed in "nanometers" or nm, which refers to the distance between transistors on the chip.
Tinier dimensions allow for more transistors in the same area. TSMC plans to produce 2 nm chips in Phoenix. The company currently makes 3nm chips, the most cutting-edge at the moment, in Taiwan, so 2 nm chips would represent another step forward.
Who are some of TSMC's biggest customers?
They include Apple, Nvidia, Qualcomm, Advanced Micro Devices and other manufacturers of electronic products. About 70% of TSMC's sales go to American companies, which have expressed a desire for U.S.-made chip supplies.
Is TSMC a Chinese or a Taiwanese company?
TSMC is headquartered in Taiwan, where many of its fabs or factories are located, with others in the U.S., Japan and China. When the Communist Party under Chairman Mao Zedung took over China in 1949, nationalist forces fled to Taiwan and set up a government there. China claims Taiwan, sometimes formerly called Formosa, as a breakaway province. The U.S. has provided defense support to the Taiwanese over the decades since then.
Where is the massive TSMC Phoenix plant located?
The complex is under construction near 43rd Avenue and Dove Valley Road, near where Interstate 17 and Loop 303 meet in north Phoenix. TSMC bought nearly 1,100 acres of land that had been managed by the Arizona State Land Department in 2020 at auction for $89 million.
When will the TSMC complex start producing semiconductors?
The company keeps adding phases. The first fab or factory, announced in 2021, will start producing chips during the first half of 2025. The second fab will come online by 2028, and the third fab before the end of the decade. The second and third factories will produce the most advanced 2 nm chips.
The second and third phases were announced after the CHIPS and Science Act was enacted in 2022. That year, President Biden, who championed the legislation, toured the TSMC complex. Last month, Biden also toured Intel's expansion in Chandler, where that company will make advanced chips using up to $8.5 billion it will receive in CHIPS funding.
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What do jobs pay at TSMC?
When asked in late 2023, the company declined to disclose salary ranges for jobs at the plant. However, a company spokesperson said the average salary at the plant will be higher than Arizona’s average annual wage for the manufacturing sector, which is $88,868 per year, according to data from the Arizona Commerce Authority.
According to a TSMC job posting, an entry-level equipment maintenance technician can earn between $24 and $35 per hour. The job requires a high school diploma or GED with machine-maintenance experience; an associate degree in engineering, science or a related field; or applicable military training.
According to data from Glassdoor, which uses information reported from current and former employees, salaries for technician roles can range from about $50,000 per year to about $81,000. According to Glassdoor data, engineering roles at TSMC range from about $95,000 to $150,000, depending on responsibility and experience.
How can people apply for jobs at TSMC?
TSMC's three phases are expected to create about 6,000 direct jobs at the plant, ranging in responsibilities and qualification requirements. Most employees at a semiconductor fab are technician-level. TSMC has already begun hiring at its plant for various jobs and has dozens of open postings. To see what jobs are available and to submit an application, visit https://www.tsmc.com/static/abouttsmcaz/index.htm.
Are apprenticeships available at TSMC in Phoenix?
Yes. In January, the Biden Administration, TSMC, Phoenix, the Maricopa Community College District, Arizona State University and other entities celebrated the launch of a "first of its kind" apprenticeship program.
The company intends to train 80 technician apprentices over five years. A TSMC spokesperson said the first group of apprentices are people who have worked for contactors for TSMC and who were identified as people who would be interested and could benefit from the apprentice program. Future participants will likely come from career and technical education programs at high schools or in the community college system.
What is TSMC receiving in CHIPS Act funding?
The company is in line to receive up to $6.6 billion in grants under the legislation, with payments made as milestones are achieved. TSMC also could receive $5 billion in loans on favorable terms including below-market interest rates, Commerce Secretary Gina Raimondo confirmed in a conference call with Sen. Mark Kelly, a major proponent of the bill.
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How much water will TSMC use?
The company hasn't yet specified that, but the goal will be to reclaim most of the water through an in-house recycling system, perhaps 90%, a spokeswoman said. In particular, TSMC will aim to convert industrial wastewater for reuse for various other purposes.
Who owns TSMC?
The company is publicly traded, with shares listed in Taiwan and on the New York Stock Exchange. Many American mutual funds have stakes, including those with an international or tech-focused investment orientation. The Taiwanese government also is a major investor.
Reach the writers at russ.wiles@arizonarepublic and [email protected].
This article originally appeared on Arizona Republic: 12 things to know about expanding TSMC's $65B Phoenix microchip plant