TSMC is going to build 6 new plants in Arizona..
Has Arizona got enough water?

Equally important is whether Arizona has enough technical people to populate a large wafer fab.
When companies based in Silicon Valley decided to open plants in Albuquerque, Fort Collins and Austin, nobody wanted to relocate. They didn't want to move to a town with only one possible high tech employer. That may have eased somewhat over the last 25 years or so but the thing about working in the Valley is that you can change jobs by turning in the wrong driveway in the morning.
There are other requirements, most notably electric power. Arizona has the Palo Verde nuclear plant which is always under pressure to decommission. Then there are the other suppliers - process gases and chemicals are not usually available when moving into a new community. It's also nice when process equipment is designed and built locally.
Building a fab in the middle of nowhere is not a trivial undertaking.
Why do it? Locational Diversity. Insurance companies don't want all of a company's manufacturing located in one area - particularly when that happens to be an earthquake zone.
https://en.wikipedia.org/wiki/List_of_semiconductor_fabrication_plants
I live in Tucson, which is about 100 miles south of Phoenix. I've been here for 24 years.
THERE IS NOT ENOUGH WATER IN ARIZONA.
This is the whole of the truth. The rest, as the rabbi said, is commentary, so now go study it: Everyone should read the book
Cadillac Desert, first published in 1988, to understand what's really going on. The book has turned out to be prescient.
The water level of Lake Mead, formed by the construction of the Hoover Dam, is at a historically low level and there's no end in sight. Same with the water level of the giant error called Lake Powell, formed when Glen Canyon was dammed. The lifeline to the entire region is the Colorado River and it's ... running at historically low levels.
There is no water.
The sprawl here is insane. Housing developments go up with absolutely zero guarantees of a water supply.
The concern about qualified engineers and technicians is valid.
Yes, the state is home to a land-grant research university (University of Arizona here in Tucson) as well as two other excellent public universities, Northern Arizona University in Flagstaff and Arizona State in Tempe. Do these universities produce enough graduates to meet the demand? I honestly don't know.
But -- and this is important -- we have sociopathic assholes running the state. Forget, if you can, the insanity of the "audit" of the 2020 vote. The Legislature and the Governor keep cutting education funding to the point where we had a state-wide initiative to increase taxes to restore education funding to what it was prior to the 2007 recession. It passed overwhelmingly. Yet the Legislature is trying to run through another tax cut to nullify that law, and that will pass.
As you can imagine, our public schools have been struggling.
So when a company like, say, Intel or Microchip, wants to expand and attract new talent to the area, the first thing anyone with a family or considering having a family will ask is, "What are the schools like?" And that information is easy to find, and it is damning. So no amount of tax concessions to businesses for "job creation" can make someone uproot from wherever and move to a state which simply doesn't value education at all.
Does the new job pay for a private school? Hahaha. Welcome to Arizona, where the salaries are as low as the water level.
Anyway. Southern Arizona will be uninhabitable in about 50 years. Count on it.