Mack Real Estate Group To Build $7B Mixed-Use Project Next To Semiconductor Plants
New York-based Mack Real Estate Group was awarded the development rights to over 2,300 acres of fully entitled land immediately adjacent to the Taiwan Semiconductor Manufacturing Co. fabrication campus in northern Phoenix.
MREG, through its affiliate Biscuit Flats Dev LLC, won the right to build out the anticipated $7B mixed-use development next to the chip-fabrication campus at an auction by the Arizona State Land Department, the firm announced in a release. Plans include 28M SF of residential, retail, industrial and office space, including up to 8,900 housing units.
“We are privileged to help in the building of a new type of city that both supports and leverages the domestic and international digital transformation enabled by TSMC’s new semiconductor manufacturing campus,” Mack Real Estate CEO Richard Mack said in a statement. “We hope that this new silicon city will serve as a model for public-private cooperation, to not only bring back high-tech manufacturing jobs to the US, but also to create the live/work environments of the future.”
TSMC previously said its Phoenix factories would create as many as 10,000 high-tech jobs, including 4,500 jobs at TSMC itself.
MREG spent $56.28M to secure the site it had been planning to acquire since 2022, the Phoenix Business Journal reported. MREG requested that the state land department hold the auction. Three companies qualified to place bids, which required them to demonstrate that they could pay for up to $150M of infrastructure upgrades. At auction, MREG was the only bidder, the PBJ reported.
Developer McCourt Partners will work with MREG on the project through a joint venture. Further details of the partnership were not disclosed. The JV will have control of land sales within the site, which will take place over several years, and oversee infrastructure improvements.
The joint venture also has the ability to develop multiple uses on roughly 600 acres of the site.
TSMC, the world’s largest chipmaker, has a 1,100-acre site where it is already building three semiconductor fabrication plants it committed $65B to. The company received a $6.6B direct funding boost from the federal government’s CHIPS and Science Act of 2022 in April, but it was already at work on two plants before then, according to its website.
The fabrication plants will produce chips that will power an array of advanced electronic devices, from phones to cloud servers to medical diagnostic tools. TSMC supplies major players in the industry, including Apple and Google.
