Taiwan Semiconductor Manufacturing Co. has snapped up another large swath of Arizona land to support its plans to invest more than $100 billion in the area as it builds additional chips to support the global artificial intelligence boom.
The company acquired 902 acres of land through an Arizona State Land Department auction that took place Wednesday. TSMC was the sole bidder for the land and will pay $197.25 million.
TSMC's new land is immediately to the south of its current Phoenix operations at 5088 W. Innovation Circle, which spans more than 1,100 acres near Interstate 17 and the Loop 303 freeway in North Phoenix.
The auction ended after less than five minutes. Following the auction's conclusion, TSMC declined to comment.
TSMC makes chips on behalf of customers that are powering the artificial intelligence real estate boom such as Apple, Nvidia and others.
Nvidia estimates that global AI infrastructure spending on real estate and other support systems will total as much as $4 trillion by the end of the decade.
Ramping up in Phoenix
TSMC has invested more than $65 billion toward the construction of three semiconductor fabrication facilities at the Phoenix site, making it the largest foreign direct investment in the state’s history, according to TSMC.
The company applied to bid on the 902-acre parcel in October after announcing plans to invest an additional $100 billion in the area.
In a recent earnings call, TSMC Chairman and CEO C.C. Wei said the additional land provides "more flexibility in response to the very strong multiyear AI-related demand."
TSMC previously told CoStar News that it considered its proximity to its current Phoenix campus, availability of a "contiguous plot of land" and access to utilities as reasons to move forward with the land auction.
In total, TSMC wants to have six chip manufacturing sites, two advanced packaging facilities and a research and development center between the collective 2,000-plus acres it now owns in Phoenix.
TSMC entered Arizona in late 2020 when it won 1,128 acres through another state land auction. It started chipmaking production at the site in 2024.
Just to the north of TSMC's plant is the $7 billion Halo Vista mixed-use development, which spans 2,300 acres. That park is being developed to support the TSMC ecosystem and the North Phoenix area as a whole.