TSMC modeled its facility in Phoenix on one at home. But bringing the company’s complex manufacturing process to America has been a bigger challenge than it expected.
Whatever challenges Taiwan may face during manufacturing, I imagine them being an island surrounded by water helps. Whereas Arizona is… a desert. Unless I’m behind Arizonian lore here, I don’t think a place that imports water by the truckload is the best place for a notoriously water intensive production.
About water. The Colorado River provides the largest source of fresh water (that can be purified further and easier) for the Greater Phoenix Valley. They are stored in reservoirs behind large dams. https://en.wikipedia.org/wiki/Salt_River_Project (sorry to use natopedia but these pages were short and to the point)
It's disgusting how many data centers are located in Phoenix. It's the (mostly) dry climate, and that allows better thermal and moisture control.
living in phoenix for almost decade has taught me that an overwhelming majority of phoenicians don't care; so most will never notice the lack of water and will never revolt even if they did.
Desalinating and purifying the water costs energy as well, and Taiwan imports over 90% of its energy. So, there's only so much clean water they can produce, meaning that they have to make choices regarding how it's allocated.