Phoenix Approves $12 Billion Development Deal With TSMC

On November 18 City Council of Phoenix, Arizona voted in favor of a $12 Billion development deal with chip manufacturer Taiwan Semiconductor Manufacturing Co (TPE: 2330) in which the company will build a factory in the city.

The Council voted 9-0 in favor of the agreement with Taiwan Semiconductor, prior to the voting session mayor of Phoenix Kate Gallego termed the agreement ‘a great success across so many levels of government in helping Arizona become a leader in advanced manufacturing.

According the agreement, the city will provide $205 million for improvement of infrastructure such as roads and water across the city.

Back in May,TSMC made public its plans of building a 5-nanometer chip factory in Arizona making it the first ever advanced manufacturing factory in the United States. In the beginning of the month, the company approved an investment to establish a wholly owned subsidiary in Arizona with a paid in capital of $3.5 billion.

Going per the agreement, TSMC will build a new factory which will create full time employment opportunities for 1,900 individuals in a five year period.

Construction of the company is set to commence in the beginning of 2021, the factory is set to begin official production in 2024.

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