Arizona Semiconductor Industry: A Powerhouse in the Making

A Rising Force in Semiconductor Manufacturing

In the sun-soaked deserts of Arizona, a major shift is unfolding, one that not only has the potential to reshape the global semiconductor landscape but also underscores the state’s pivotal role in powering the future of technology worldwide. With its strategic location, supportive business environment, and skilled workforce, Arizona has emerged as a hotspot for semiconductor manufacturing, attracting billions in investments and driving unprecedented growth in the industry.

The semiconductor industry is the backbone of modern technology, powering everything from smartphones and laptops to automobiles and advanced medical devices. As the demand for electronic devices continues to soar, fueled by trends like 5G connectivity, artificial intelligence, and the Internet of Things, the need for semiconductor chips has reached unprecedented levels.

One of the primary factors driving Arizona’s semiconductor surge is its strategic location and favorable business climate. Arizona offers several advantages for semiconductor companies, including abundant land for development, reliable infrastructure, and proximity to major markets in North America. Moreover, the state boasts a business-friendly regulatory environment and provides various incentives to attract investment, such as tax credits, grants and workforce training programs.

The Arizona Semiconductor Industry by the Numbers

According to the Semiconductor Industry Association, semiconductors are Arizona’s second-ranked export by value at $3.5 billion and the state is the second-strongest semiconductor epicenter in the United States. The flourishing industry contributes significantly to employment, creating more than 140,000 jobs, including 22,000 semiconductor manufacturing jobs alone. There are 107 semiconductor makers in the state and four fab facilities under construction bolstering this growth. Arizona’s unwavering commitment to the semiconductor market is evident, offering fertile ground for collaboration and presenting immense opportunities for companies to engage in pioneering semiconductor and advanced packaging research and development (R&D).

Major Players Invest in Arizona’s Future

In years past, several major semiconductor companies made significant investments in Arizona, positioning it to become a semiconductor powerhouse. Intel, one of the world’s leading semiconductor manufacturers, has a substantial presence in the state, with multiple manufacturing facilities and research centers. In 2020, Intel announced plans to invest $20 billion in the construction of two new semiconductor fabrication facilities, or fabs, in Arizona, signaling its long-term commitment to the region.

More recently, other industry giants such as Taiwan Semiconductor Manufacturing Company (TSMC) and Amkor Technology, Inc. also announced plans to build manufacturing facilities in Arizona. TSMC, the world’s largest contract chipmaker, revealed its intention to build a $65 billion semiconductor fab in Phoenix, marking its first manufacturing facility in the United States. Amkor, a leading semiconductor packaging and test service provider, plans to construct its first domestic outsourced semiconductor assembly and test (OSAT) facility in Peoria, Arizona. Amkor anticipates investing around $2 billion and creating approximately 2,000 jobs at the new site. Once completed, this facility will be the largest outsourced advanced packaging and test facility in the United States. The company also signed a non-binding preliminary memorandum of terms with the US Department of Commerce to receive proposed funding for this project, as part of the CHIPS and Science Act.

Beyond attracting established players, Arizona fosters a vibrant culture of innovation and entrepreneurship in the semiconductor sector. The state is a thriving hub for startups and research institutions focused on semiconductor technology, driving collaboration and knowledge exchange within the industry. Initiatives launched by the Arizona Commerce Authority, the Greater Phoenix Economic Council, and the Arizona Technology Council provide resources and support to semiconductor companies, fostering a spirit of innovation and entrepreneurship that is propelling the industry forward in the highly competitive global market.

Arizona: A Hub for Collaboration and Progress

In a bold move underscoring Arizona’s importance to the semiconductor industry, SEMICON West, North America’s flagship event for semiconductor equipment and materials suppliers that has traditionally been held every year in San Francisco, announced its relocation to the desert state every other year starting in 2025. The decision reflects the undeniable gravitational pull that Arizona has exerted on the semiconductor landscape, emerging as a focal point for groundbreaking research, cutting-edge technology, and collaborative partnerships. As an epicenter of semiconductor innovation, Arizona offers an unparalleled ecosystem, boasting a convergence of industry leaders, top-tier research institutions, and a skilled workforce. By shifting its prestigious event to Arizona, SEMI – the industry association that produces SEMICON West – not only acknowledges the state’s growing role in shaping the future of the semiconductor industry but also emphasizes its commitment to fostering continued innovation in this dynamic field.

The Arizona Semiconductor Industry: An Emerging Global Leader

The surge in semiconductor growth in Arizona is not only reshaping the state’s economy but also positioning it as a key player in the global semiconductor supply chain. With its robust infrastructure, skilled workforce, and supportive ecosystem, Arizona is fully prepared to play a pivotal role in driving innovation and advancing technology for years to come. As the demand for semiconductor chips continues to rise, Arizona stands confidently ready to meet the challenge, powering the future of technology one chip at a time.