City officials in Phoenix, Arizona, have unanimously approved a deal with microchip manufacturer Taiwan Semiconductor Manufacturing Co. and will spend $205 million to bankroll roads, drainage and water upgrades.

TSMC is the largest contract chipmaker in the world and builds microchips for Apple, Qualcomm and other tech companies. The agreement will see a $12 billion microchip plant in Phoenix.

Shares of TSMC on the New York Stock Exchange were down almost 0.3% at $96.61 in pre-market trading Friday.

City officials expect the Taiwan chip manufacturer's advanced fabrication facility will provide jobs for 1,900 people over the next five years. Production is set to start in 2024.

TSMC announced in May it was planning to build a 5-nanometer semiconductor plant in Arizona, which would be its first state-of-the-art manufacturing site in the U.S. Earlier this month, the company gave the green light for a wholly owned subsidiary in Arizona with capital of $3.5 billion.

The city council estimates a direct economic revenue of around $38 billion over the next two decades and a boost in yearly personal income by about $314 million.

Semiconductor companies Intel and Micron Technology already have plants in Arizona and have helped create a dynamic local chip industry over the years.

Phoenix Mayor Kate Gallego called the deal "a great success across so many levels of government in helping the state become a leader in advanced manufacturing," Reuters quoted her saying.