PHOENIX – The short answer the president wants to give: tariffs. TSMC was already fully committed to our state, but this changes the scope of what’s happening here.

In the last few weeks, the first chips produced at Taiwan Semiconductor in Phoenix were ready for delivery. It’s a massive economic story that’s now more than doubled overnight.

What we know:

During an announcement at the White House, C.C. Wei, the CEO of TSMC spoke with Trump about this new investment in Arizona.

“We are going to embrace an additional $100 billion in addition to our current $65 billion investment in Arizona.”

A total now of $165 billion is invested here. TSMC is already committed to building three full-scale fabrication facilities here. Now they’ll double that amount, and will build two new packaging plants, and a research and development center.

The backstory:

TSMC already employs thousands of Arizonans.

“You’re probably talking about 20-25,000 jobs, but it will get bigger over time, knowing this gentleman, it will get bigger and bigger, no stopping him,” said Trump.

The chips made at the Arizona facility power every electronic you can think of. 

What they’re saying:

TSMC didn’t expand on the timing of the announcement, but U.S. Commerce Secretary Howard Lutnick says it’s because of the Trump taxation policy.

“They can come here because they can avoid paying tariffs,” he said. “If they did them in Taiwan, to send them here, they’ll have 25% or 30% or 50% or whatever the number. Maybe someday it will only go up.”

Phoenix Mayor Kate Gallego stated, “Billions in investment and thousands of high-tech, high-paying jobs illustrate how TSMC is a partner in cementing Phoenix as a global leader in semiconductor production.”

Rep. Abe Hamadeh also celebrated the news, saying “They are clearly committed to President Trump’s American First Manufacturing agenda, bringing high-paying employment opportunities to CD8, allowing US leaders to increase the quality of life for our residents.” 

The perspective here is really important. We’ve talked for years about how massive it is for the Arizona economy to have three fabrication facilities and $65 billion in investment. On March 3, that more than doubled.

This is a developing story. At 6 p.m., we’ll hear from some of the state’s biggest economic leaders about why this matters so much for all of us in Arizona.