TSMC is booming in Phoenix — and it needs thousands of new workers

• But the next wave of TSMC workforce development will require capturing workers at every entry point: recent high school graduates, mid-career laborers displaced by automation, food-service workers who never considered a job in the tech industry and top engineering graduates with post-secondary degrees.

Threat level: Failing to meet the moment could cost the Valley more than just squandered high-paying jobs.

• It could also amount to a national security shortfall of epic proportions — the U.S. sees TSMC's investment here as the first major step to decrease its reliance on foreign semiconductor manufacturing.

State of play: TSMC's first Phoenix fab, or fabrication plant, began production last year, employing 3,000 workers. By the time its third fab opens by the end of the decade, the company anticipates needing 6,000 total employees, TSMC Arizona president Rose Castanares told Axios.

• TSMC will build another three fabs, two advanced packaging facilities and a research and development center over the coming decades, and Castanares said to expect employee growth at a similar clip until build-out.

The big picture: The semiconductor industry is not new to Phoenix. But the scope and speed of TSMC's investment here and its technological advancement mean there are not nearly enough readily qualified employees to meet TSMC's planned growth.

Yes, but: The U.S. — and Arizona specifically — have an abundance of workers who, with appropriate training, can be an asset to TSMC, Castanares told Axios.

• While the company decided to open a U.S. campus because of customer demand, company leaders are also excited to tap into the American talent pipeline, she said.
• That's why TSMC has invested in university and community college programs that attract and train local employees.

Zoom in: The majority of TSMC workers are either engineers, who require college degrees, or technicians, who do not.

• The company recruits engineers across the U.S. but hires the majority of them from ASU, Castanares said.
• ASU has quickly developed new microelectronics programs to meet the growing workforce need and student interest in the field. The university is currently building a manufacturing and advanced packaging research and development facility.
• Meanwhile, TSMC partnered with Maricopa Community Colleges beginning in 2022 to launch a 10-day Semiconductor Technician Quick Start program to provide an industry introduction.

Between the lines: Paula Livingston, vice president of academic affairs at Estrella Mountain Community College, said the community college system wants to help industries develop workforce pipelines, but its main commitment is to serving students.

• That's why colleges have since introduced other stackable programs so technicians can come back, learn new skills and grow within TSMC or pursue other advanced manufacturing jobs.

The latest: TSMC launched an apprenticeship program for technicians last year.

• Apprentices receive extra training and mentorship, allowing them to accumulate certifications through area community colleges and universities while working full-time at TSMC. Employers (in this case, TSMC) help design the training for apprenticeships, allowing them to ensure company-specific skills are at the forefront, National Institute for Industry and Career Advancement CEO Mike Russo told us
• Employees benefit because it allows them to get college certifications — increasing their long-term earning potential, whether they stay with TSMC or work elsewhere — while making a solid salary.

The bottom line: These "learn and earn" programs are critical to the next wave of TSMC's hiring because they'll allow workers to begin right away and accumulate credentials over time. They also open job opportunities to a larger swath of the population that can't afford traditional schooling.

• "Let's not leave the brains on the table. Let's motivate them to participate," Russo said.