Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) which produces silicon chips for tech companies has acquired 1,128 acres of land in north Phoenix for $89 million at a state land auction. The company plans to build a $12 billion semiconductor plant on the land which will create around 1,900 jobs.

TSMC acquires a parcel of land for its $12 billion factory

The $89 million TSMC bid was the only one that Arizona state received at an auction of the land off Interstate 17. The auction showed the location where TSMC’s manufacturing plant which it announced in May will be. The plant which will manufacture advanced 5-nanometer fab will commence construction in 2021 with chip production expected by 2024.

According to company officials, the company is looking forward to delivering an advanced semiconductor fab. They said that the fab will enable the company to better support its partners and customers and also offer more opportunities for the company to attract more talents.

Phoenix’s economic development director, Christine Mackay said that TSMC will break grown next year and commence production by 2024. She said that they are delighted that TSMC picked Phoenix as the plant will provide 1,900 jobs over the five years. Mackay added that this is a great opportunity for the city, state, and the country as well.

TSMC factory to create 1900 jobs

Kate Gallego, Phoenix’s mayor said that the TSMC factory will be the largest foreign direct investment ever in Arizona. She added that the timing is right and as the city looks to exit the current downturn they plan to transform phoenix as the next smart city with high-paying jobs. Gallego said that the TSMC plant will enhance the quality of jobs for the whole business ecosystem in the city. As a result, this will open up the city for other companies to invest in.

The land acquired by TSMC is part of the 3,500-acre parcel owned by Arizona State. The parcel underwent rezoning for employment use including three districts; a technology park, technology campus, and freeway mixed-use development.