A Taiwan chemical company has broken ground on a north Phoenix factory, its first U.S. manufacturing facility, to supply the Valley’s growing chipmaking industry including the giant Taiwan Semiconductor Manufacturing Co. complex under development nearby.
Sunlit Chemical said it expects the first phase of the plant to be operational in 2023. The company said it will commit $100 million total in two phases to develop the 900,000-square-foot facility on 17 acres at Seventh Avenue and Alameda Road, a few miles east of the Taiwan Semiconductor Manufacturing complex.
The first phase will produce hydrofluoric acid and other high-purity industrial chemicals. Phase two of the factory, involving raw-material purification, is expected to be operational in 2025. Hydrofluoric acid is used to etch and clean silicon wafers.
Sunlit’s chemical-manufacturing process is highly automated and isn’t expected to result in a significant number of employees.
Still, Arizona Gov. Doug Ducey said the investment “bolsters Arizona’s semiconductor supply chain (and) our reputation as a global semiconductor powerhouse” while expressing confidence in water availability.
“Many of these companies are leading edge in terms of technology, water innovation, water use and how they cycle the water through their system,” the governor said. “These are companies that could have gone anywhere in the country and have chosen Arizona with our current water situation.”
Sunlit Chemical, which turns 50 this year, also produces sodium fluoride for the dental industry and chemicals for other uses, including in the solar and steel-manufacturing industries.
“This new milestone marks Sunlit’s commitment to our partners that we are ready to expand our reach beyond Asia and set sights on the global front,” said Bryan Lin, Sunlit’s president. “This new facility enables Sunlit to be the leading main supplier of high purity hydrofluoric acid to semiconductor fabs in the U.S.,” he said, with a shorter supply chain.
Supplier bottlenecks stemming from COVID-19 manufacturing disruptions and port closures have affected many industries, including semiconductors. Another Taiwan semiconductor supplier, LCY Chemicals, also has expressed interest in building a U.S. factory, possibly in Arizona.
Lin vowed that the plant will adher to the “highest standards of environmental and safety management, water efficiency and energy management.” Still, chemical manufacturing is a hazardous business.
Sandra Watson, president and CEO of the Arizona Commerce Authority, said the Sunlit groundbreaking represents another addition to Arizona’s rapidly expanding semiconductor base, and Phoenix Mayor Kate Gallego predicted that this will be the “first in a series of foreign companies investing here as a result of TSMC.”
In addition to Taiwan Semiconductor Manufacturing’s announcement of a $12 billion factory in 2020, Intel last year broke ground on two new chipmaking factories in Chandler that could represent the largest private-company investment ever in the state, at $20 billion.
And earlier this month, EMD Electronics announced a $28 million investment for a new factory in Chandler to expand its gas and chemical delivery businesses.
Taiwan Semiconductor plans to start chipmaking in Phoenix in 2024.
Reach the writer at russ.wiles@arizonarepublic.com.
Republic reporter Stacey Barchenger contributed to this article.
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