by Matthew Holloway | Mar 6, 2025 | Economy, News
By Matthew Holloway |
Arizona Congressman Abe Hamadeh (R-AZ8) issued a statement following the announcement by President Donald Trump of a pivotal deal with TSMC (Taiwan Semiconductor Manufacturing Co.) to bring $100 billion in investment for chip manufacturing plants in the U.S. over the next four years.
“Earlier this month, my team met with representatives of TSMC to discuss their plans for future jobs in Arizona, which should focus on tapping into our veteran workforce,” Hamadeh said in the statement. “They are clearly committed to President Trump’s American First Manufacturing agenda, bringing high-paying employment opportunities to CD8 allowing US leaders to increase the quality of life for our residents.”
TSMC established itself during the Biden Administration through the controversial 2020 CHIPS Act. It was at the center of a lawsuit in November due to its hiring practices allegedly favoring Taiwanese nationals as previously reported by AZ Free News. Their current Arizona facility is located within Hamadeh’s congressional district.
In December, the development of TSMC’s Phoenix facility was placed at risk by an unfavorable nonattainment status of ozone National Ambient Air Quality Standards (NAAQS) by the EPA under Biden, leading then-Congresswoman Debbie Lesko, Hamadeh’s predecessor to intervene.
In December 2022, TSMC announced a commitment to build a second fabrication facility (fab) in addition to its North Phoenix facility, increasing its total investment to $40 billion.
As detailed by President Trump in a press conference on Monday, the new investment is set to bring Arizona’s total number of TSMC facilities to five, with thousands of new jobs.
President Trump told reporters, “This $100 billion in new investment will go into building five cutting-edge fabrication facilities in the great state that we just discussed, Arizona, and will create thousands of jobs — many thousands of jobs, and they’re high-paying jobs. In total, today’s announcement brings Taiwan Semiconductor investments to about $165 billion — they’ve started already — among the largest new foreign direct investments in the United States.”
The President added, “Taiwan pretty much has a monopoly on that market. And I think ‘pretty much’ is not a term that’s even appropriate. They do have a monopoly. And this is a tremendous move by the most powerful company in the world. It’s a matter of economic security. It’s also a matter of national security for us.”
TSMC expansion is expected to create approximately 80,000 jobs over the next 5 years.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Dec 15, 2024 | News
By Matthew Holloway |
Following intervention from Congresswoman Debbie Lesko (R-AZ-08), the EPA has reportedly decided not to move forward with its decision to declare Maricopa County’s nonattainment status of ozone National Ambient Air Quality Standards (NAAQS) as ‘serious.’ Lesko publicly expressed concern that the change was motivated by the “upcoming administration change,” and not the law.
According to a press release from Lesko’s office, the Environmental Protection Agency (EPA) Administrator agreed to reconsider the decision to “prematurely reclassify” Maricopa County’s status of nonattainment as ‘serious.’
In her letter to the EPA, as previously reported by AZ Free News, Lesko warned, “If the EPA continues its expedited schedule in a rush to make their reclassification effective before the Trump Administration takes office, it will negatively impact Arizona and national security. The Taiwan Semiconductor Manufacturing Company (TSMC) was just awarded $6.6 Billion in CHIPS Act funding. This action by the EPA could jeopardize that funding and makes absolutely no sense.”
In her letter, Rep. Lesko expressed concern that the reclassification was not based upon law or environmental science but on politics. She wrote, “The reason for this change is not clear to me, but I am concerned tat this action was taken based upon the political reality of the upcoming administration change.”
She explained, “The law states that there is a 180-day window from August 3, 2024 for redesignation. The expedited timeline is set prior to the 180-day deadline.” She added, “It is crucial that the EPA and other federal agencies keep a consistent and stable regulatory environment where they do not expedite or change rulings based on the upcoming changes in executive power.”
As noted in our previous coverage, the arbitrary redesignation would lower Maricopa County’s emissions threshold from the current 100 tons to 50 tons for major sources of nitrogen oxides and volatile organic compounds, with said adjustments jeopardizing the operations of TSMC in Phoenix.
“TMSC’s new plant requires an air quality permit to proceed. The current major source threshold of 100 tons would allow TSMC to proceed without needing to acquire emission reduction credits (ERCs),” said Lesko.
“However, a redesignation to serious nonattainment would impose the 50-ton threshold, which is currently unfeasible due to the shortage of available ERCs, thus potentially delaying or halting this key project.”
Congresswoman Lesko posted to X on Friday to announce the result of her appeal to the EPA. She wrote, “Great news! Following my letter to the EPA sent earlier this week and after working with Senator Kelly and the governor’s office, our office has now heard from the EPA they will no longer move forward with the decision to prematurely reclassify Maricopa County to “serious” nonattainment status for their ozone National Ambient Air Quality Standards (NAAQS). This is wonderful news!”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Staff Reporter | Dec 8, 2024 | News
By Staff Reporter |
A recent decision by the Environmental Protection Agency (EPA) concerning Maricopa County may have been politically motivated and may pose a national security risk.
The EPA decided earlier this week to reclassify Maricopa County to “serious” nonattainment status for its ozone National Ambient Air Quality Standards (NAAQS). Congresswoman Debbie Lesko claimed that the EPA’s reclassification poses a national security risk in a Wednesday press release. The congresswoman argued that finalization of the reclassification ahead of a second Trump administration would jeopardize Arizona’s newly established semiconductor manufacturing.
“If the EPA continues its expedited schedule in a rush to make their reclassification effective before the Trump Administration takes office, it will negatively impact Arizona and national security,” said Lesko. “The Taiwan Semiconductor Manufacturing Company (TSMC) was just awarded $6.6 Billion in CHIPS Act funding. This action by the EPA could jeopardize that funding and makes absolutely no sense.”
Lesko speculated in letters of appeal to the EPA and Commerce Department that the EPA was acting in a rushed response to undermine president-elect Donald Trump’s incoming administration.
“The reason for this [EPA] change is not clear to me, but I am concerned that this action was taken based upon the political reality of the upcoming administration change,” said Lesko.
Lesko further argued the EPA was “premature” in its reclassification. Lesko referenced an understanding via communications with the EPA that the agency wouldn’t issue its decision until next May.
Not only has the EPA acted prematurely, Lesko argued, but their expedited timeline works outside of the legal requirement to have a 180-day window for redesignation from Aug. 3, 2024, which would land on Jan. 30, 2025. The presidential inauguration takes place on Jan. 20, 2025. Lesko asked the EPA to honor its original May timeline.
EPA Region 9 advised Maricopa County Air Quality that they would issue a Federal Register Notice containing an “expedited redesignation” within the coming weeks.
The redesignation would lower Maricopa County’s emissions threshold from 100 tons to 50 tons for major sources of nitrogen oxides and volatile organic compounds. Lesko said these adjustments would jeopardize TSMC operations.
“TMSC’s new plant requires an air quality permit to proceed. The current major source threshold of 100 tons would allow TSMC to proceed without needing to acquire emission reduction credits (ERCs),” said Lesko. “However, a redesignation to serious nonattainment would impose the 50-ton threshold, which is currently unfeasible due to the shortage of available ERCs, thus potentially delaying or halting this key project.”
Lesko cited further concerns that the expedited redesignation would harm the Maricopa County and Arizona economies by dissuading industry growth and recruitment for technology and advanced manufacturing.
Maricopa County Air Quality issued a release earlier this year warning that the EPA would reclassify their ozone nonattainment from “moderate” to “serious” nonattainment prior to Feb. 3, 2025.
The EPA included Maricopa County in its final rule, finding it in October as an area that failed to submit a plan addressing EPA ozone requirements for moderate nonattainment areas. The EPA reclassified Maricopa County from marginal to moderate in 2022, and gave the county until last January to submit its plan.
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by Matthew Holloway | Nov 16, 2024 | Economy, News
By Matthew Holloway |
The massive microchip manufacturing firm, the Taiwan Semiconductor Manufacturing Company (TSMC), finds itself facing a class-action lawsuit brought by over a dozen of its current and former employees. TSMC was brought into Arizona through the Biden administration’s CHIPS Act.
The charge presented is a potentially devastating one: that TSMC is engaging in “anti-American” hiring and workplace bias and is discriminating against American workers while favoring Taiwanese nationals imported on work visas. For a firm that is now deeply tied to the political fortunes of the outgoing Democratic administration, and the now-minority party in Congress, the allegations are stunning.
The lawsuit makes the claim that TSMC employs over 2,668 workers in its North American operations and that the vast majority of them are Asian, stating, “This grossly disproportionate workforce is the result of TSMC’s intentional pattern and practice of employment discrimination against individuals who are not Asian and not Taiwanese citizens, including discrimination in hiring, staffing, and termination decisions.”
In the text of the suit, attorneys representing the workers note, “TSMC’s bias in favor of Asians and Taiwanese citizens was even apparent when it was hiring construction workers to build its first Arizona fab (via TSMC affiliates United Integrated Services (UIS) and Marketech International Corp.). TSMC chairman Mark Liu complained of “an insufficient amount of skilled workers” to build the facility and planned to fly workers in from Taiwan. TSMC agreed to focus on local hiring for those positions only after massive and public outcry from Arizona labor unions.”
The incident referenced was covered by AZ Free News in July 2023 when Liu made the complaint coinciding with President Joe Biden’s first visit to Arizona to tour the facility. Biden told reporters at the time that he “owes an awful lot” to TSMC with Corrinne Murdock observing that founder Morris Chang’s wife worked on his first Senate campaign.
Phoenix Mayor Kate Gallego also reportedly holds ties to TSMC with a former senior policy advisor and campaign donor, Laura Franco French, serving as TSMC’s director of state government relation. French took the role directly following her tenure with Gallego’s office.
At the time, Liu told reporters, “We are encountering certain challenges, as there is an insufficient amount of skilled workers with the specialized expertise required for equipment installation in a semiconductor-grade facility.”
“While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025.”
The suit notes that TSMC applied for and received a $6.6 billion grant from the Federal Government via the CHIPS Act predicated on a diverse hiring policy and claims the firm “willfully disregarded diversity commitments TSMC made in the CHIPS Act,” adding that approximately half of TSMC’s Arizona work force of 2,200 people are Taiwan nationals on work visas.
Daniel Kotchen, one of the attorneys representing the plaintiffs, told AZFamily, “If you are receiving federal funding to create jobs in the U.S., it is your responsibility to live up to the rules and laws under the U.S.”
Deborah Howington, a current talent acquisition executive at TSMC, was the first plaintiff claimed to have witnessed the culture of illegal, discriminatory practices that favored Taiwanese candidates and employees first-hand. As reported by Forbes, Howington alleges in the suit that TSMC specifically sought candidates from Taiwan for jobs in the U.S. and confidentially employed an “Asian headhunter,” to attract these recruits.
A company spokesperson responding to questions on the lawsuit told Forbes, “TSMC believes strongly in the value of a diverse workforce and we hire and promote without regard to gender, religion, race, nationality, or political affiliation because we respect differences, and believe that equal employment opportunities strengthen our competitiveness.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Corinne Murdock | Jul 28, 2023 | Economy, News
By Corinne Murdock |
Plans by state and local leadership to establish Arizona as a leader in semiconductor manufacturing have stalled due to a lack of skilled workers.
Taiwan Semiconductor Manufacturing Company (TSMC) announced last week that it will delay production until 2025: a full year after their initially planned launch. TSMC produces 90 percent of the world’s microchips, supplying major products like Apple’s iPhone, iPad, and Mac computers.
TSMC Chair Mark Liu indicated in last week’s second quarter earnings call that efforts on their end to gin up an adequate workforce couldn’t counter the limited talent pool in the country.
“We are encountering certain challenges, as there is an insufficient amount of skilled workers with those specialized expertise required for equipment installation in a semiconductor-grade facility,” said Liu. “While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025.”
Maricopa County Community Colleges (MCCC) partnered with Intel to launch a program last year to supplement the burgeoning semiconductor industry’s workforce, estimated to be around 3,000 workers between Intel and TSMC. Students who pass certification receive a $270 stipend to cover the tuition cost.
TSMC raised their investment in the state from $12 billion to $40 billion ahead of President Joe Biden’s visit to tour the Phoenix facility last year.
Biden’s TSMC appearance marked his first and only trip to the state during his entire presidency — even with the ongoing border crisis. Biden justified prioritization of a manufacturing facility over the border crisis by claiming the border wasn’t important.
Biden’s first and, so far, only interest in visiting Arizona may align with his consistent desire to prioritize business and personal interests over national interests (as reflected by his alleged involvement in the laptop debacle revealing corrupt foreign business dealings by his son, Hunter Biden). Biden said during his TSMC speech that he “owe[s] an awful lot” to TSMC because the wife of its founder, Morris Chang, worked his first Senate campaign.
Phoenix Mayor Kate Gallego also has ties to TSMC. Gallego’s former senior policy advisor and campaign donor, Laura Franco French, serves as TSMC’s director of state government relations. Franco French joined TSMC in 2021 immediately after departing Gallego’s office, where she’d served since Gallego became mayor in 2019.
Gallego’s TSMC connection may explain her apparent lack of concern with TSMC’s delay. When asked about the TSMC issue with obtaining skilled workers during an interview on Sunday, Gallego responded with a non-answer.
“We are very excited to be the future of semiconductors. It’s so important that we’re onshoring manufacturing of these essential devices in the United States and we’re going to take an all-hands-on deck approach to make sure it is successful,” said Gallego. “President Biden has picked Phoenix as one of the innovation job hubs and will be able to partner with the US Department of Commerce in particular, but across his administration to do training for our residents. We have a very successful project with our community college where people can get a six-week certificate in semiconductors that’s produced hundreds of graduates so far, but we know we have to turn it up so that we can deliver not just for Arizona but for the world.”
In addition to the shortage of skilled workers, TSMC’s development in Arizona may be delayed due to other concerns with health and environmental impact.
Perfluoroalkyl and polyfluoroalkyl substances (PFAS) — dubbed “forever chemicals” for their resistance to breaking down — are integral to microchip production. PFAS have been linked to a host of serious health issues concerning fertility, fetal development, bone variations, behavioral changes, accelerated puberty, high blood pressure, liver disease, cancer, lowered immunity, hormone disruption, thyroid disease, high cholesterol, and obesity. Chemical waste from factory production has led to PFAS contaminating water and, consequently, humans and the environment.
The Biden administration has progressively focused on PFAS with increasing pressure. Last June, the Environmental Protection Agency (EPA) issued four drinking water health advisories for PFAS. Last August, the EPA proposed designating two of the most widely used PFAS as hazardous substances. Last December, the EPA required facilities to report on all PFAS usage. In March, the EPA issued its first-ever proposal to regulate PFAS in drinking water.
READ MORE EPA ACTIONS ADDRESSING PFAS
The Biden administration has offered $3 billion in grants to states and territories to clean up PFAS in drinking water; it also launched an analytics tool for the public to track PFAS contamination.
3M announced in December that it would halt PFAs production by 2025, a move which set off alarm bells for TSMC and other chipmakers. The announcement came ahead of the company’s $10.5 to $12.5 billion settlement for drinking water contamination.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
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