Chemical plant
pandemic, according to the company’s latest quarterly financial report.
Metro Phoenix economic development groups including the Greater Phoenix Economic Council and the Arizona Commerce Authority declined to comment or didn’t reply to inquiries for this article. Nor did KKR & Co., the New York-based private equity firm that acquired LCY two years ago.
Taiwan Semiconductor purchased more than 1,100 acres for $89 million to build the northwest Phoenix plant, which is expected to result in around 1,900 jobs. Groundbreaking for the facility near Loop 303 and 43rd Avenue is planned for later this year.
The company is the world’s largest dedicated or contract producer of semiconductors. LCY Chemicals also produces other types of chemicals along with plastics, rubber, copper foil, solar energy components and more.
Shortening the supply chain
Various factory delays caused by COVID-19 shutdowns and staff infections have focused attention on localizing supply chains in many industries. Also, U.S. officials, including former President Donald Trump, have highlighted the need to increase domestic manufacturing of components, including semiconductors.
“The supply chain shift and restructuring is something I’ve never seen in the past decades,” Liu told Nikkei Asia, which noted that LCY’s isopropyl alcohol product is important for cleaning wafers and manufacturing equipment.
Chemicals used in advanced semiconductor manufacturing need to be virtually free of defects, Liu said. Locating a supply plant close to a customer factory can help in that regard — and avoid the 45-day, 7,000-mile voyage from Taiwan to Arizona.
According to the Nikkei Asia report, plans aren’t yet finalized for the proposed Arizona facility and that factory construction would take about two years, placing its possible opening toward the end of 2023.
Liu told Nikkei Asia that his company was in close contact with Arizona government officials and has talked to other chemical suppliers to see if any have a willingness to collaborate on the plant. No location was cited.
The Nikkei Asia article indicated that recycling and environmental protection would be given high importance at the new factory. Recycled semiconductor chemicals can be used in other industries and applications, including coatings and construction.
LCY also has a chemical factory near Houston and in other nations including Taiwan and China.