TSMC FTZ LETTER OF SUPPORT - 01-11-2021, FINAL.DOCX

FOREIGN TRADE ZONE
REQUEST FOR NON-OBJECTION
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY (TSMC)
City of Phoenix Foreign Trade Zone No. 75
Generally located at the Northwest corner of Loop 303 and 43rd Avenue alignment, parcel 204-09-001
and is owned by Taiwan Semiconductor Manufacturing Company (TSMC).
Summary from the owner’s representative
TSMC is applying for Foreign Trade Zone (FTZ) designation for the Northwest corner of Loop 303 and 43rd
Avenue alignment, parcel 204-09-001, to be included in the City of Phoenix’s Foreign Trade Zone No. 75.
FTZ designation will allow reclassification of this property from Class 2 with a tax assessment ratio of 15%
to Class 6 with a tax assessment ratio of 5% under A.R.S. 42-12006.
TSMC plans to construct a high-tech manufacturing campus at this location for manufacturing and
semiconductor fabrication, which will include administrative and other supporting facilities. This new
manufacturing campus is expected to create 4,500 new job positions over a 20-year period with an
average annual salary of approximately $70,000 within the Greater Phoenix Area. Construction is
expected to begin in 2021 and operations to begin in early 2024. The total investment planned for land,
building and equipment at the is approximately $12.0B. It is estimated that approximately $3.5B will be
for land and building and approximately $8.5B for equipment at the facility.
TSMC, founded in 1987, has been the world’s largest dedicated semiconductor foundry. The company
supports a thriving ecosystem of global customers and partners with the industry’s leading process
technologies and portfolio of design enablement solutions to unleash innovation for the global
semiconductor industry. With global operations spanning Asia, Europe, and North America, TSMC serves
as a committed corporate citizen around the world. TSMC’s headquarters are in Hsinchu, Taiwan.
Status of Taxing Jurisdiction Concurrence Letters
 Received Concurrence Letters
o City of Phoenix
o Deer Valley Unified School District
o Maricopa County Special Health Care District (a.k.a. Valleywise Health)
o Western Maricopa Education Center (West-MEC)
o Central AZ Water Conservation District (CAP)
Fiscal and Economic Impact
Economic Impact estimates are provided by Greater Phoenix Economic Council (GPEC).
 TSMC will add approximately 4,500 full-time employees.
 Estimated $110.3 million in direct tax revenues and $6.6 million in indirect tax revenues for a total
of $116.9 million in tax revenue to Maricopa County over a 20-year period.
 Estimated $6.3 billion of direct personal income and an additional $2.5 billion of indirect personal
income for a total of $8.8 billion to Maricopa County over a 20-year period.

 Over a 20-year period this project will create $28.5 billion in economic output, with $20.4 billion
in direct economic output, and $8.1 billion in indirect output.
Property Tax Impact
 Property taxes collected for the parcel currently are approximately $0 annually for Maricopa
County, as parcel 204-09-001 was owned by the State of Arizona until TSMC purchased it on
December 9, 2020. Estimated property taxes for this parcel in its current status as a Class 2
property without FTZ designation are estimated at $4,626. When improvements are completed
and as a Class 6 property under FTZ designation, property taxes will grow to approximately
$2,061,648 annually for Maricopa County.