TSMC pays $197M for north Phoenix land to propel expansion

By Corina Vanek

TSMC Arizona bought 900 acres of land near Loop 303 and Interstate 17 at an Arizona State Land Department auction Jan. 7 to facilitate the company’s massive semiconductor manufacturing facility’s expansion.

The starting bid for the land was $197.25 million. The semiconductor giant indicated in September it was interested in the land to accommodate its $165 billion facility in north Phoenix.

At the time, Chris Dotts, a spokesperson for TSMC, said the company will need additional land to accommodate planned expansion of the fabrication facility. The overall plan includes six chip fabrication facilities, two advanced packaging facilities and a research and development center.

The Phoenix City Council approved the rezoning for the TSMC site and the broader area around it, called NorthPark, at a meeting in late December.

The remainder of the NorthPark site is still controlled by the Arizona State Land Department, and will likely be auctioned in pieces in the future, though no auctions have been scheduled yet.

It is proposed to eventually have about 15,000 housing units, including single-family homes and apartments, along with multiple schools, commercial development and about 2,000 acres of natural open space. Homebuilder PulteGroup was the other applicant in the NorthPark zoning case that included the TSMC site.

The remainder of the NorthPark site is still controlled by the Arizona State Land Department, and will likely be auctioned in pieces in the future, though no auctions have been scheduled yet.

It is proposed to eventually have about 15,000 housing units, including single-family homes and apartments, along with multiple schools, commercial development and about 2,000 acres of natural open space. Homebuilder PulteGroup was the other applicant in the NorthPark zoning case that included the TSMC site.

TSMC has not confirmed a timeline of when construction could begin on the new site.

Final Thoughts:

TSMC’s $197M acquisition of 900 acres in North Phoenix signals a major expansion of its semiconductor operations, underscoring Arizona’s growing role as a semiconductor hub. The purchase will support multiple fabrication and packaging facilities, along with an R&D center. The surrounding NorthPark area is planned for mixed-use development, including housing, schools, commercial space, and open areas, further enhancing the region’s economic growth and residential opportunities.