On March 3, 2025, President Donald Trump and TSMC Chairman and CEO Dr. C.C. Wei announced a monumental $100 billion investment by Taiwan Semiconductor Manufacturing Company (TSMC) in Arizona, bringing the company’s total U.S. investment to $165 billion. This expansion builds on TSMC’s existing $65 billion commitment to construct three semiconductor fabrication plants (fabs) in Phoenix and introduces plans for three additional fabs, two advanced packaging facilities, and a major research and development (R&D) center. Hailed as the largest single foreign direct investment in U.S. history, this initiative promises to reshape Arizona’s economy while bolstering national security and technological leadership in the semiconductor industry.
The economic implications of this investment are staggering. TSMC projects the creation of 40,000 construction jobs over the next four years and tens of thousands of high-paying, high-tech jobs in chip manufacturing and R&D. Beyond direct employment, the ripple effects are expected to drive more than $200 billion in indirect economic output across Arizona and the United States over the next decade. This includes spending on housing, retail, and services as new workers settle in the region, alongside growth in the supply chain for materials, equipment, and technology. Arizona’s already-thriving semiconductor ecosystem—amplified by companies like Apple, NVIDIA, AMD, and Qualcomm, which rely on TSMC’s chips—will see further reinforcement, positioning the state as a global hub for advanced manufacturing.
Local leaders have celebrated the announcement. Phoenix Mayor Kate Gallego emphasized that the investment cements the city “as a global leader in semiconductor production,” fostering innovation and economic growth. Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry, highlighted the “trickle-down effect,” noting that high-paying jobs will spur demand for housing, dining, and other local businesses, boosting the state’s tax base. The Greater Phoenix Economic Council estimates that TSMC’s presence will generate hundreds of billions in semiconductor value, particularly for artificial intelligence (AI) and emerging technologies, aligning with national priorities to reduce reliance on foreign supply chains.
The timing of this expansion aligns with broader U.S. policy goals. Building on the CHIPS and Science Act of 2022, which provided TSMC with $6.6 billion in grants and up to $5 billion in loans, the investment reflects a bipartisan push to onshore critical industries. President Trump credited tariff threats as a catalyst, calling it a “negative incentive” that spurred TSMC’s commitment. The result is a strengthened domestic supply of cutting-edge chips—vital for AI, smartphones, and defense applications—enhancing both economic and national security.
Estimating Civil and Structural Engineering and Detailing Services
The scale of TSMC’s $165 billion project necessitates extensive civil and structural engineering services, as well as detailing support, to construct six fabs, two packaging facilities, and an R&D center across 1,100 acres in Phoenix. Semiconductor fabs are among the most complex industrial facilities, requiring precision engineering for cleanrooms, vibration control, and utility systems to support advanced manufacturing processes. While exact figures depend on project specifics, industry benchmarks provide a basis for estimation.
Construction costs for semiconductor fabs typically range from $10 billion to $20 billion per facility, with civil and structural engineering services comprising approximately 10-15% of total capital expenditure. For TSMC’s six new and existing fabs, assuming an average cost of $15 billion each (totaling $90 billion), engineering services could range from $9 billion to $13.5 billion. The two packaging facilities, smaller but still sophisticated, might cost $5 billion each ($10 billion total), with engineering services adding $1 billion to $1.5 billion. The R&D center, estimated at $5 billion, could require $500 million to $750 million in engineering support. Collectively, civil and structural engineering services for the $165 billion project might total $10.5 billion to $15.75 billion.
Detailing services—producing precise drawings and models for steel, concrete, and mechanical systems—are a subset of these costs, typically 1-2% of construction budgets. For the $105 billion in estimated construction costs (fabs, packaging, and R&D), detailing could range from $1.05 billion to $2.1 billion. These figures assume economies of scale and Arizona’s competitive construction market, though labor shortages or material price fluctuations could push costs higher.
In conclusion, TSMC’s $100 billion investment promises to transform Arizona’s economy with jobs, innovation, and indirect growth, while demanding substantial engineering expertise. The estimated $10.5 billion to $15.75 billion in civil and structural engineering services, including $1.05 billion to $2.1 billion in detailing, underscores the project’s complexity and its potential to elevate the state’s infrastructure capabilities for decades to come.
