In a move that will add thousands of jobs and provide an enormous economic boost to the valley, the city of phoenix has approved a massive $12 billion deal with Taiwan Semiconductor Manufacturing Company (TSMC).

TSMC recently bought 1,128 acres of land in north Phoenix at a state land auction for this project, according to reports. TSMC will build an advanced semiconductor fabrication plant to produce the company’s 5-nanometer technology for semiconductor wafer. The $12 billion figure represents direct capital investment; the full economic impact of the deal is estimated at $16 billion. In addition to being a record-setting deal for Phoenix, it is also among the largest private investments in Arizona history.

“It is remarkable that this came to fruition during a pandemic,” says Phoenix Mayor Kate Gallego. “It speaks volumes about what makes Phoenix so attractive. We have the workforce, the neighborhoods, and the kind of peer network of advanced manufacturers that companies like TSMC look for.”

She added, “The payoff is huge. TSMC will create 1,900 high-tech jobs and foster thousands more related jobs in the semiconductor supply chain ecosystem.”

Initial conversations with TSMC began several years ago and have continued ever since. Mayor Gallego traveled to Taiwan last year to solidify relationships and move the deal forward. At the council meeting, the mayor thanked those involved for the hard work and persistence that brought the project across the finish line.

Construction is set to begin early this year. The plant is expected to be in production by 2024.