phoenix aims to become 'taiwan town' with tsmc's massive $165 billion investment
Phoenix, Tuesday, 25 March 2025.
tsmc’s colossal $165 billion investment in phoenix, arizona, marks the largest foreign direct investment in us history. the influx of capital aims to transform the city. local authorities plan a supplier park to attract taiwanese businesses. mayor gallego envisions a vibrant ‘taiwan town,’ a cultural hub celebrating taiwanese cuisine and traditions. this ambitious project highlights tsmc’s growing influence. the project could reshape phoenix into a significant center for taiwanese culture and industry.
tsmc’s phoenix expansion and stock market impact
TSMC’s increased investment in Phoenix is expected to significantly influence its stock [1]. The $165 billion project includes constructing three new wafer fabs, two advanced packaging facilities, and a main research center [2]. This expansion increases TSMC’s manufacturing capacity in the united states [2]. Analysts view this as a strategic move to diversify its manufacturing base and meet rising global demand [6]. The close proximity of TSMC’s front-end fab and Amkor’s back-end facility will accelerate overall product cycle times [8].
geopolitical implications and market leadership
This investment reduces geopolitical risks for TSMC by expanding production outside of taiwan [GPT]. Kate Gallego, Phoenix mayor, anticipates further benefits, including increased business activity and the establishment of a ‘Taiwan Town’ [1]. This project aims to create a cultural and economic hub [7]. Wang Tao Bank is also considering opening an office in Phoenix to capitalize on the business opportunities arising from TSMC’s expansion [6]. Wang Tao Bank aims to increase its overseas profits from nearly 40% to over 50% [6].
challenges and infrastructure development
Despite the optimism, challenges remain [GPT]. Ho-Shuo Chairman, Tong, Tzu-hsien, noted that electricity inefficiency has increased defective products on production lines [5]. Phoenix is developing a supplier park modeled after Taiwan’s Hsinchu Science Park to address infrastructure needs [1][2]. The city is allocating land for development near TSMC’s facilities [1]. This infrastructure development aims to create a comprehensive semiconductor ecosystem in Arizona [1]. The expansion is projected to generate thousands of jobs in the region, offering economic security to residents [2].
tsmc stock performance and future outlook
TSMC’s stock reached 995 NTD on March 25, indicating an attempt to return to 1000 NTD [5]. Foreign investors have recently sold off TSMC shares, while investment trusts and proprietary traders have been buyers [5]. TSMC’s American Depositary Receipts (ADR) rose more than 2% due to potential tariff exclusions [5]. Minister Kuo, Chih-hui, will attend TSMC’s Kaohsiung 2-nanometer plant expansion ceremony on March 31 [5]. TSMC is also recruiting engineers for its 2-nanometer plant in Kaohsiung, offering competitive salaries [5].