TSMC gets 'OK' in Phoenix

The deal would flush USD 205 million into city coffers, marked for infrastructure improvements. In return, TSMC would build a USD 12 billion chip factory in Phoenix. The company disclosed in May 2020 that it plans to build a 5-nanometer chip factory in Arizona, which would be its first advanced manufacturing facility in the United States, writes Reuters. In early November 2020, it's board approved an investment to set up a wholly owned subsidiary in the U.S. state with paid-in capital of USD 3.5 billion, as covered by Evertiq. Under the now signed agreement, TSMC will build a new factory and create 1'900 new full-time jobs to be phased in over a five-year period. Construction would start in early 2021, with factory production expected in 2024. A formal deal is scheduled to be signed after a site has been selected, something that is expected before the year is out. In return, Phoenix City has agreed to build three miles of streets (USD 61 million), improve water infrastructure (USD 37 million) as well as waste water management (USD 107 million).