TSMC Pays Nearly $200 Million for Land South of Loop 303
Taiwan Semiconductor Manufacturing Co. has secured additional land in North Phoenix for future expansion, just south of the 303 on the west side of I-17 in the potential future NorthPark master-planned development proposed by Pulte Homes.
TSMC was the lone bidder on the 902-acre parcel that sold in an Arizona State Trust Land auction Jan. 7 for $197.25 million.
A third wafer fab is currently under construction, and the company is in the process of applying for permits to begin the construction for a fourth fab and first advanced packaging fab on its current campus on the west side of I-17, north of Loop-303.
Construction on the chip giant’s second wafer has been completed and is awaiting tool move-in and installation. A third wafer fab is currently under construction, and the company is in the process of applying for permits to begin the construction for a fourth fab and first advanced packaging fab on its current campus on the west side of I-17, north of Loop-303.
To further its expansion in U.S. based advanced semiconductor manufacturing facilities, TSMC began looking to secure more land and announced its intent to invest an additional $100 billion in March 2025.
A TSMC spokesperson told Valley Vibe all in, with the new investment along with the buildout of its current campus, TSMC is looking to operate a total of six chip fabs, two advanced packaging facilities and a research and development center, with an overall investment of $165 billion.
Regarding the newest land purchase and continued expansion, TSMC Chairman and CEO CC Wei said in a recent report, “Our plan will enable TSMC to scale up to an independent GIGAFAB cluster in Arizona, to support the needs of our leading-edge customers in smartphone, AI and HPC applications.”
TSMC will be responsible for infrastructure work and improvements within the parcel and is required to submit a traffic impact analysis to the City of Phoenix and the Arizona Department of Transportation.
Given all the stipulations, TSMC could not provide a timeline for infrastructure work to begin on the new site.
TSMC Construction Milestones
» First fab started high-volume production in late 2024.
» Construction of the second fab was completed in 2025 with operation start accelerated from original plans for the second half of 2027.
» Construction on the third fab began in April 2025. Operation start targeted by 2030.
» An Industrial Water Reclamation Plant began construction in August 2025, and is slated for completion in 2028 to enable 90 percent or better water recycling. Today TSMC recycles 65 percent.
» Permit and application process is underway to begin the construction of a fourth fab and first advanced packaging fab on the existing campus.
By Karen Goveia
editor@valleyvibenews.com