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 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 fabrication facilities, or fabs, 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 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 also announced plans to establish 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 OSAT (outsourced semiconductor assembly and test) 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.
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, 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.
As a testament to Arizona’s rising prominence in the semiconductor industry, SEMI recently hosted an Arizona Chapter breakfast forum titled “Is Silicon Desert the New Innovation Hub?” The event gathered esteemed speakers from across the sector, including luminaries like Joe Stockunas, President of SEMI Americas; Kevin Gorman, Senior Vice President & Head of Patterning Solutions at EMD Electronics, a business of Merck KGaA, Darmstadt, Germany; Sean Fogarty, Vice President of International Business Development for the Greater Phoenix Economic Council; and Spencer Wall, Vice President of Business Development for DSV Inventory Management Solutions, among others. These industry leaders offered invaluable insights on various critical topics, including market trends, emerging sectors, and the forecast and outlook of semiconductor growth, illuminating the transformative impact of Arizona’s semiconductor landscape. Moreover, discussions delved into pivotal areas such as university and state infrastructure, R&D, sustainable manufacturing practices, and workforce training, highlighting the integral position of Arizona in shaping the future of semiconductor innovation and advancing global technological progress.
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.
