Tech chipmaker brings $12 billion factory to North Phoenix
By Karen Goveia
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A weathered gas sign from the 1970s remains at the southwest corner of I-17 and Carefree Highway as a reminder of the area that once housed a general store and Exxon gas station. A popular stop to and from Lake Pleasant, some even claim it was the stretch of highway which sparked Gordon Lightfoot’s inspiration for the song “Carefree Highway.”
The acreage is now poised to become part of North Phoenix 3500—a master-planned employment district anchored by a giant semiconductor plant—the catalyst for future commercial development between Carefree Highway and Loop 303, just west of I-17.
“When you think Price Corridor [in Chandler] or you think Silicon Valley, that’s how this area will develop out,” Phoenix Economic Development Director Christine Mackay told Valley Vibe.
Silicon chipmaker for Apple and other large technology companies, Taiwan Semiconductor Manufacturing Company (TSMC), was the sole bidder at $89 million on 1,128 acres of state trust land in a December auction.
Phoenix City Council approved rezoning 3,500 acres in October to allow for construction of the fabrication plant and to prepare for future development of the mixed-use employment hub.
Thousands of Jobs Expected
TSMC plans to begin construction on the facility in early 2021, with chip production targeted to begin in 2024, according to a company news release. The global semiconductor manufacturer is expected to generate 1,600 technology jobs directly as well as thousands of construction and indirect jobs.
TSMC is investing $12 billion to build the factory, and the City of Phoenix has agreed to fund $205 million in infrastructure improvements, according to city documents.
“When you think Price Corridor [in Chandler] or you think Silicon Valley, that’s how this area will develop out,”
Phoenix Economic Development Director Christine Mackay
Future Growth
The overall vision for North Phoenix 3,500 includes plans for commercial buildout of a business commerce park, as well as commercial developments including retail, hotels and office buildings along the eastern portion of the property bordering I-17.
The site will be accessible from I-17 at both Dove Valley Road and Carefree Highway, according to plans filed with the City of Phoenix. Two future Loop 303 freeway interchanges are also planned at 43rd and 51st Avenues.
“They say it takes a village to raise a child, but it’s taken an entire state to bring this company to Phoenix,” Mackay said, adding that the agreement is the result of a years-long partnership between the Greater Phoenix Economic Council, Arizona Commerce Authority, Taiwan’s Economic Ministry, and the City of Taipei.
TSMC also operates a U.S. plant in Washington. More than a dozen jobs in engineering and management in Phoenix are already posted on the company’s website.