Kate Gallego Calls TSMC's $100 Billion Investment 'The Largest Deal in US History'

One hundred billion dollars. That's how much Taiwan Semiconductor Manufacturing Company is adding to its already massive investment in Phoenix, and Mayor Kate Gallego (D-AZ) says it changes everything.

The announcement brings TSMC's total commitment to Arizona to $265 billion, a figure Gallego called "the largest deal in US history." She declared it a moment that cements Phoenix as "the heart of America's technology manufacturing economy."

TSMC, the world's leading semiconductor manufacturer, already operates a large and growing campus in north Phoenix that began mass-producing AI chips for NVIDIA late last year.

Additionally, the new investment will fund several more semiconductor fabrication facilities focused on the most advanced chip technologies currently available, as well as expanded packaging capabilities to meet what the company describes as strong multi-year demand from its top American customers.

"This is to build several more semiconductor logic wafer fabs for 2nm and below technologies, as well as advanced packaging fabs, to support the strong multiyear demand from our leading U.S. customers," said TSMC Chairman and CEO C.C. Wei.

He added that the investment would help strengthen the U.S. semiconductor supply chain and create a growing number of high-tech, high-paying jobs across the country.

The announcement connects to several threads of recent policy. The Trump administration linked the investment to a U.S.-Taiwan trade agreement finalized earlier this year, with Commerce Secretary Howard Lutnick saying it would "bring advanced semiconductor manufacturing back to America."

KTAR also reported that TSMC received $6.6 billion in direct federal funding under the Biden-era CHIPS and Science Act in 2024, and earlier this year purchased nearly $200 million worth of land near its existing Phoenix campus to accommodate future expansion.

For Gallego and Phoenix, the bottom line is straightforward: the city is becoming America's semiconductor capital, and this investment makes that official.