phoenix sky harbor to asia: tsmc plant drives new nonstop route
Phoenix, Wednesday, 21 May 2025.
phoenix will gain its first nonstop flight to asia. this is thanks to tsmc’s arizona plant commencing production in the fourth quarter. starlux airlines plans to operate three to four weekly flights between phoenix and taipei. phoenix mayor kate gallego credits tsmc’s massive $165 billion investment for boosting air service demand. the direct flight is expected to significantly enhance business travel and investment opportunities in the semiconductor industry, solidifying phoenix’s role as a major tech hub. flights are expected to begin early 2026.
tsmc’s arizona investment and phoenix connectivity
The establishment of a nonstop flight between Phoenix and Taipei, facilitated by TSMC’s Arizona plant, reflects the growing economic ties and increasing demand for travel between the regions [1]. TSMC’s substantial $165 billion investment in Arizona includes the construction of multiple chip fabrication plants, the first of which began production in the fourth quarter of 2024 [1]. Two additional plants are under construction with expected production start dates in 2028 and by the end of the decade, further solidifying TSMC’s presence and impact on the local economy [1].
market leadership and manufacturing capacity
TSMC is the world’s largest contract chip manufacturer [7]. The company’s investment in the U.S. is part of a broader strategy to expand manufacturing capacity and address geopolitical concerns [5][7]. The Arizona plant, known as Fab 21, is heavily guarded to protect intellectual property [5]. Visitors are restricted from using personal devices to prevent design leaks [5]. TSMC’s ability to safeguard client secrets is a major reason why companies like Apple and Nvidia entrust their designs to them [5].
geopolitical implications and u.s. strategy
The TSMC Arizona plant is central to the U.S. strategy to outcompete China in technology, AI, and economics [5]. Both the Biden and Trump administrations have implemented policies to limit China’s access to advanced semiconductor technology [5]. These policies include restrictions on exporting ASML machines to China and prohibitions on using U.S. software or technology in Huawei AI chips [5]. The move is viewed as a critical step in securing the supply chain and reducing reliance on taiwan for advanced chips [GPT].
tsmc and nvidia collaboration
TSMC is reportedly in discussions with Nvidia to produce Blackwell AI chips at its Arizona facility [7]. Nvidia launched the Blackwell series in March, and demand is currently outpacing supply [7]. While TSMC plans to produce the front-end of Nvidia’s Blackwell chips in Arizona, the chips will still need to be shipped back to Taiwan for advanced packaging [7]. This is because the Arizona facility lacks the necessary chip-on-wafer-substrate (CoWoS) packaging capabilities [7]. All of TSMC’s CoWoS packaging capacity is currently located in Taiwan [7].
analyst perspectives and supply chain dynamics
Creative Strategies CEO Ben Bajarin noted that Blackwell chips use more advanced packaging technology, creating additional challenges [7]. He anticipates that Nvidia’s Blackwell chips will remain in short supply throughout 2025 [7]. Securing another client for the Arizona plant could positively impact TSMC’s stock [alert! ‘no specific stock price or target mentioned in source’]. The plant is scheduled to begin mass production next year, with Apple and AMD already listed as clients [7].
starlux airlines expands north american network
Starlux Airlines is actively expanding its North American network, with the Phoenix route becoming its fifth destination in the region [6]. Prior to the Phoenix launch, Starlux plans to begin flights to Ontario, California, in June [6]. Starlux Chairman Chang Kuo-wei stated that the airline should invest in flights to Phoenix, citing significant business growth between Taipei and Phoenix [4]. He also expressed pride in Starlux becoming the first airline to fly nonstop from Phoenix to Asia [4].