Utility company makes progress on infrastructure for Taiwan Semiconductor project in north Phoenix

Electric utility company Arizona Public Service has made progress on infrastructure needed to power the massive Taiwan Semiconductor Manufacturing Co. facility in north Phoenix.

APS is currently relocating three major sets of transmission lines, including a 500 kilovolts, 230-kilovolt and a couple of 69-kilovolt lines, so TSMC and gas-provider Linde can build on the 1,100-acre property.

In September, Linde (NYSE: LIN) announced a long-term agreement with TSMC to build, own and operate a complex of on-site plants to supply ultra-high-purity nitrogen, oxygen and argon, which will represent an approximately $600 million investment from Linde, the company said.

As part of its relocation work with the semiconductor company, APS is also in the process of relocating wiring along four miles of steel utility poles with the rare use of a helicopter.

APS also is building out the Avery Substation and switchyard between the plant and Interstate 17, which will use a 230-kilovolt underground transmission line. In comparison, a home computer typically uses about .12 kilovolts, APS said.

“It’s a huge project, it’s a huge scale from a customer perspective for the infrastructure that we need to do,” said Tony Tewelis, vice president of transmission and distribution operations for APS. “We’ve been working with them the last two and half years to make sure we can meet our initial in-service date.”

In its first phase, TSMC will need approximately 200 megawatts, which is equivalent to powering nearly 30,000 homes in Arizona, according to APS. The company said it will have an ongoing relationship with the company to plan future growth as TSMC potentially develops up to six phases on 1,128 acres of land just north of the Loop 303 freeway in Phoenix, which could require an additional substation in the future.

The infrastructure will also support other customers such as suppliers and long-term needs of the area, APS said.

APS said TSMC will be on the Extra High Load Factor rate plan, which was first used for data centers, but it also utilized by manufacturers or customers that can achieve a 92% minimum load factor requirement.

The new TSMC factory (called Fab 21) will be the first the company builds in the U.S. after building the majority of its plants on the island of Taiwan. TSMC has already hired hundreds to staff the new factory, which isn’t slated to be operational until 2024. The company plans to hire around 2,000 in Phoenix.

In the past 18 months, north Phoenix has become one of the most active commercial areas in the Valley, driven by the $12 billion first phase of the TSMC plant.