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What Happened: Phoenix authorities expect that the Taiwanese chipmaker’s advanced semiconductor fabrication campus could generate 1,900 new jobs over the next five years. Production is scheduled to begin in 2024.
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With the new plant in operation, the council estimates a direct economic contribution, in terms of output, of approximately $38.2 billion over the next 20-year period and a boost in annual personal income by $314 million.
The council will fund roughly $205 million for infrastructure projects that support TSMC’s plant. It will spend an estimated amount of $61 million on road connectivity, $37 million on public water infrastructure, and $107 million on sewers and public wastewater infrastructure.
An on-site professional team will also be available.
Why Does It Matter: TSMC approached Phoenix authorities with the project in May 2020. According to Bloomberg, outgoing-President Donald Trump’s China-bashing and warnings over manufacturing electronics outside the U.S. did have a generic impact on the city council’s decision.
Separately, another Apple-supplier, Hon Hai Precision Industry Co, or Foxconn, engaged with Wisconsin State officials since 2017 for a $10 billion plant in the city, per Apple Insider. However, the LCD manufacturing plant’s fate was uncertain after a disagreement between state officials and Foxconn’s management. Expectedly, Foxconn completed making its first batch of LCDs in a manufacturing plant in Vietnam.
Price Action: TSM shares were 0.29% lower at $96.65 in the pre-market session on the last check Thursday.
This story originally appeared on Benzinga.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Fang Dongxu/VCG via Getty Images
