New Plants and Related Home Developments Being Built in Surprise, AZ, and Casa Grande, AZ
Phoenix is quickly benefiting from its rising reputation as a major semiconductor hub. A massive new plant in north Phoenix is spurring supplier companies from over the world to locate here as well as new housing developments.
Since early 2021, the largest semiconductor chip maker in the world, Taiwan Semiconductor (TSMC), has been building a massive chip-making plant in northern Phoenix. It is located in on a 1,050-acre campus in Surprise, AZ near the 303 Interstate Loop intersection and west of I-17.
Its move into the Phoenix area is spurring other companies to locate in the Phoenix and also other major housing developments.
The New Surprise, AZ, and Casa Grande, AZ Plants
For example, on Jan. 19, the City of Casa Grande greenlighted 2 foreign semiconductor suppliers to TSMC to build related factories and receive foreign trade zone (FTZ) status. Casa Grande is just south of Phoenix, where Lucid Motors (LCID) is located.
The City of Phoenix will have the final say in the approval of the FTZ. But if it is quickly approved, expect to see other major companies in the semiconductor arena locate to Phoenix.
The $12 billion TSMC chip fabrication plant build, according to CNBC, is already well under construction and is scheduled to go online in 2024. Construction on the first phase of the first building at the Sonoran Oasis Science and Technology Park is ongoing and should be completed by July 2022, according to the Daily Independent.
It will be making the most sophisticated chips in the world with 5-nanometer spacings on an annual production of 20,000 wafers monthly.
As a result, chip production in Phoenix will contribute to a major reduction in the worldwide shortfall in semiconductor chips.
Now, as reported by both the Phoenix Business Journal and the Casa Grande-based PinalCentral.com 2 Taiwanese companies, LCY Electronic Materials and Chan Chung Group have purchased land in Casa Grande to build supplier plants for the TSMC plant.
They also applied for FTZ status that was recently recommended by the City of Casa Grande to Phoenix. This will reduce their property taxes from 15% to 5% for 20 years.
Phoenix Now a Major Semiconductor Hub
Phoenix is already home to a host of other semiconductor companies. This includes Intel Corp (INTC), with plants in Chandler and surrounding areas, as well as ON Semiconductor (ON), NXP Semiconductors (NXPI), and Microchip Technology Inc. (MCHP) among others in the industry.
For example, Intel Corp broke ground in Sept. on 2 new semiconductor fabrication plants in its Ocotillo campus in Chandler, AZ. The 2 plants will cost $20 billion and are expected to be online by 2024.
In fact, the CEO of Intel, Pat Gelsinger, told KTAR News on Sept. 27, that he wants wants "to have Arizona and Intel be the unquestioned leaders of the world's supply of leading-edge semiconductors."
That brings the total of Intel plants in Arizona to 6 plants (all in its Ocotillo campus in Chandler, south of the Loop 202 (near the Lone Butte Casino).
In addition, on Dec. 15, 2021, EMD Electronics, a chemical supplier subsidiary of a German semiconductor chip company, was reported by Phoenix Business Journal that the company would invest $1 billion in the U.S. It indicated that Arizona is on a shortlist of candidates for a new plant.
Home Developments Near the TSMC Plant
After TSMC started building its massive new plant in north Phoenix, home builders started snatching up land near Loop 303 and the TSMC plant. They intend to build a series of new housing developments near the plant.
For example, according to a local Phoenix online magazine, the Daily Independent, a number of builders have bought land and announced home building plans.
For example, on Oct. 15, 2021, a builder named Mattamy Homes paid $6.65 million for a 79-acre parcel near the plant in Surprise, AZ. It plans on building 178 homes on the parcel, called Tierra Vistoso.
Another homebuilder, Lennar Corp (LEN), said it would build more than 200 homes (228 homes) along Interstate 17, south of Loop 303. Construction started in Oct. 2021 and the homes will cost between $400,000 and $500,000. This site was unique since it was privately owned land, as most of the land in the area is owned by the US, county, or state authorities.
A third home builder, PulteGroup (PHM) is building a development called Copper Leaf at Sonoran Foothills. It plans on starting construction in Q1 2022.
Bottom Line: Phoenix's new semiconductor fab and supplier plants are spring new home developments in Surprise, AZ and Casa Grande, AZ.
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