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Water-guzzling chipmaker TSMC and drought-plagued Arizona are an unlikely pair, but Phoenix says it has enough water
The Commerce Department issued a $6.6 billion grant to the Taiwanese chipmaker to build new fabrication facilities in drought-prone Arizona.
The grant will go down in Washington as one of the crown jewels of the Biden administration’s initiative to bring the supply chain for ubiquitous—and strategically vital—computer chips back to the United States. And as design companies such as Arm and Nvidia have developed new, more complex cutting-edge chips to support tech like AI, TSMC has required even more water to build them. As Arizona continues to position itself as a semiconductor manufacturing hub, Campbell said Phoenix’s water supply is capable of handling more projects—as long as they line up with expectations.
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