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Why Phoenix, Arizona?

The United States has long been home to the top semiconductor companies and engineering talent in the world.

It makes sense to expand our manufacturing capabilities in the U.S. To borrow a phrase from the poker world, we’re “all in” investing $12 billion in a new U.S. fab that will make 5-nanometer chips, the most advanced circuity in today’s products.

To put 5 nanometers in perspective, consider that the width of a human hair measures 80,000 to 100,000 nanometers. By decreasing the size of the transistor, we can add more transistors to the chip which in turn increases performance. This is allowing us to push beyond Moore’s Law.

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The Arizona facility will join the manufacturing site in Camas, Washington, as well as design centers in both Austin and San Jose to be the fourth TSMC U.S. location.

As for why Arizona and specifically Phoenix, let us walk you through the rationale.

The semiconductor industry set up shop in Arizona back in 1949, long before Silicon Valley became a thing. This means the ecosystem for a fab is already in place when it comes to work force, supply chain and public policies.

And we wanted to locate the new fab in an area that delivers a lifestyle that would attract talent from outside of Arizona. Because the Arizona fab will ultimately employ well over 1,000 engineers, we need to go beyond tapping the existing Arizona workforce.

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This is especially true when it comes to hiring college graduates and engineers early in their careers. Low cost of living. Outdoor activities ranging from rock climbing to river rafting. Craft breweries. Professional sports. Phoenix checks all the boxes.

Phoenix also offers an extremely affordable housing market (read more about the path to a down payment here).

Plus, it doesn’t hurt that Phoenix enjoys on average 299 sunny days each year.