Arizona Restaurant Owner Pleads Guilty to Firearms and immigration Charges; TSMC Arizona Plant Reports First Profit
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phoenix, AZ – August 22, 2024 – the owner of a Phoenix-area taco restaurant chain has pleaded guilty to federal charges related to firearms possession as an undocumented migrant and employing unauthorized workers, the U.S. Attorney’s Office for the District of Arizona announced Thursday. Simultaneously, Taiwan Semiconductor Manufacturing Co.’s (TSMC) Arizona facility is reporting its first profit as beginning production late last year,signaling a potential boon for the state’s burgeoning semiconductor industry.
Restaurant Owner Admits to Violations
Jose Audeves, owner and operator of El Taqueria El Taco Loko LLC – encompassing a brick-and-mortar location and two mobile restaurants across the Phoenix metropolitan area – admitted in court to knowingly hiring at least 12 individuals who were not authorized to work in the United states. Audeves is himself an undocumented migrant.
Beyond the employment violations, Audeves also confessed to possessing three firearms and ammunition, a violation of federal law given his immigration status.The specific type of firearms was not detailed in the proclamation. The case was investigated by Homeland Security Investigations (HSI). Sentencing has not yet been scheduled.
This case highlights the ongoing challenges surrounding immigration enforcement and the potential for overlap with other criminal activity. Federal law prohibits individuals illegally present in the United states from possessing firearms. Penalties for employing undocumented workers can include both civil fines and criminal charges, depending on the extent and nature of the violations.
TSMC arizona plant Turns a Corner
In a separate growth, TSMC’s $40 billion Arizona manufacturing plant has achieved profitability. The company reported a net profit of $150.1 million (USD) for its Arizona subsidiary during the first half of 2024, a significant turnaround from the $143.4 million net loss reported during the same period last year.
The plant, located in North Phoenix, began production in late 2023. The profitability comes as TSMC ramps up production to meet growing demand, particularly in the artificial intelligence (AI) sector. During a July 17th earnings call, TSMC CEO C.C. Wei cited strong AI-related demand from U.S. customers as the driving force behind the increased production in Arizona.
This positive financial performance is particularly significant in light of the U.S. goverment’s efforts to bolster domestic semiconductor manufacturing through the CHIPS and Science Act.The Department of commerce initially considered taking equity stakes in TSMC and Micron Technology in exchange for federal subsidies provided under the Act. However, Reuters reported Thursday that the white House has reportedly shifted course and is no longer pursuing equity in these two companies.
According to a U.S. Department of commerce official, companies that do not increase their U.S. investment commitments might potentially be required to offer equity in exchange for receiving CHIPS Act subsidies. This signals a continued push to ensure that federal funding translates into long-term, substantial investment in American semiconductor production.
TSMC’s Arizona plant represents a major investment in the U.S. semiconductor industry, aiming to reduce reliance on overseas manufacturing and strengthen national security. The plant is expected to create thousands of high-paying jobs in the region.
