Brilliant strategy ... move water-intensive operations from an island to a desert. Yes, you can for the most part create a closed loop, but greater Phoenix is already curtailing development on account of water sourcing. That's at the residential level.
This all smells of theatre. Sure, one fab is up and running and a second is ramping up, but we've seen these sorts of claims of investment fall through in the past (Foxconn) -- an additional $100 billion? Yeah, I'll believe that when all those shovels are in the ground.
Phoenix does make sense on the level of Intel's operations in Chandler that should in theory mean a trained workforce given Intel keeps laying people off, but unless Gelsinger was a total idiot, they didn't shed the best and the brightest, and, in fact, TSMC's first Arizona fab had delays in ramping production for lack of a qualified workforce.
Overall, a very well-researched story and solid read. Thanks for the link!