Governor Ducey, Economic Leaders Applaud Senate Passage of CHIPS Act

PHOENIX, AZ (July 27, 2022) — A sweeping plan to accelerate semiconductor investments and research in Arizona and across the country today cleared an important hurdle with passage of legislation by the U.S. Senate.

Governor Doug Ducey welcomed the passage of the CHIPS for America Act, saying it will provide a critical boost to an important and growing sector of Arizona’s high-tech economy.

“For more than two years, we’ve worked closely with our federal partners to ensure the United States remains a global chip leader and enhance our national climate for semiconductor investments,” said Governor Ducey. “Today’s bipartisan action by the Senate brings us one step closer to realizing this important goal. Arizona’s semiconductor industry is booming, with thousands of jobs and billions in new investments announced in recent years for manufacturing, research, workforce development, supply chain operations and more.”

The U.S. House of Representatives is expected to vote on the CHIPS Act later this week.

“For Arizona and the U.S. to stay at the leading edge, our national investment climate must keep pace,” Governor Ducey said. “I urge swift passage in the U.S. House of Representatives and a signature from the President. Let’s get this done.”

The CHIPS Act supports the construction or expansion of domestic semiconductor manufacturing facilities and includes funding for new research and development efforts.

“We applaud the Senate’s bipartisan passage of the CHIPS for America Act,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “This critical legislation will significantly strengthen U.S. competitiveness for semiconductors, bringing more jobs and investments to Arizona. In addition, Arizona is well positioned to benefit from new research funding advanced in the bill. Under Governor Ducey’s leadership, Arizona has become the premier destination for semiconductor investments - with more opportunity ahead. I’m grateful to Senators Kelly and Sinema and all our federal partners for championing this crucial legislation to bolster America’s semiconductor industry.”

Over the last two years, between expansions of existing operations and greenfield announcements, the state of Arizona has led the nation in chip manufacturing investment. Intel announced in March 2021 a $20 billion investment to build two additional fabs in the state, creating 3,000 jobs. Taiwan Semiconductor Manufacturing Company (TSMC) announced in May 2020 an investment of $12 billion to build a new fab in Phoenix, creating 2,000 jobs. More than 200 semiconductor manufacturing establishments currently employ more than 23,800 people in the state, placing Arizona in the top-four nationally for semiconductor employment.

The Senate’s action was welcomed by local leaders throughout the state.

Phoenix Mayor Kate Gallego:
“I appreciate the strong leadership by Arizona’s Senators Mark Kelly and Kyrsten Sinema to advance this bipartisan bill. I want to thank the Arizona US Representatives who are working to move the bill forward as soon as possible, and I hope their colleagues will join them. Passage is vital to advance the diverse economy and high-quality jobs I am focused on in Phoenix and our region,” said Mayor Gallego. “We are fast becoming the United States epicenter for semiconductor excellence, complete with jobs and world-class training programs producing top talent. Passage of the CHIPS Act will have lasting impacts for the semiconductor industry and its suppliers, and it is critical to the competitiveness and innovation economy in Arizona and throughout the country.”

Chandler Mayor Kevin Hartke:
“Here in the City of Chandler, we have been fortunate to experience the positive impacts of semiconductor manufacturing thanks to major investments by industry leaders like Intel, Microchip and NXP. These investments have catalyzed additional economic growth, bringing along companies in the supply chain that serve their operations,” said Mayor Hartke. “Semiconductor manufacturers operate on a global scale and can choose to make their next investment anywhere in the world. Passage of the CHIPS for America Act is critical to competing for future advanced chip operations and we are grateful to our federal partners for taking this important step forward.”

Casa Grande Mayor Craig McFarland:
“Passage of the CHIPS Act is a game changer for Arizona’s growing semiconductor industry,” said Mayor McFarland. “It will benefit all Arizona and means good paying jobs and new investments in local communities. The City of Casa Grande has at least half a dozen semiconductor suppliers that have announced new expansions – with more in the pipeline. We are very grateful to Arizona’s senators for advancing this important legislation.”

ASU President Dr. Michael Crow:

"The bi-partisan support for the CHIPS Act represents a strong national response to a critical demand for American research, development and manufacturing and a commitment that advances our global economic competitiveness and our national defense," Dr. Crow said. "Arizona, through its investment in the new economy initiative, is already preparing to play an important role. Arizona State University, home to the largest engineering school in the nation, is poised not only to contribute, but to lead at this crucial time. We appreciate the bi-partisan efforts, the work of economic development leaders throughout the state, and the Governor and Arizona Commerce Authority’s leadership to make passage of the CHIPS Act a priority, work that follows what has been done at the state. The road ahead will require continued collaboration and a national network of contributors, and ASU is eager to put all of its resources to work for maximum impact."

Arizona Chamber of Commerce & Industry President and CEO Danny Seiden:
“I commend members of the U.S. Senate who worked across the aisle to pass broadly supported legislation that will play a vital role in boosting American competitiveness and securing Arizona’s position as a national hub for advanced manufacturing jobs,” Seiden said. “Under the leadership of Gov. Ducey and the state Legislature, Arizona has worked hard to embrace and enact pro-growth policies that have established our state as the No. 1 destination for semiconductor production. With lower taxes, a growing workforce, an attractive regulatory environment and a booming manufacturing sector, Arizona stands to benefit greatly from this legislation, which will support semiconductor operations up and down the supply chain while strengthening our nation’s economy and national security.”

Arizona Technology Council and SciTech Institute President and CEO Steven G. Zylstra:
“The U.S. Congress is pushing hard to reduce our reliance on outsourced chip manufacturing by bolstering semiconductor innovation here at home,” said Zylstra. “The passing of the CHIPS Act is critical to meet this goal and would be a huge win for the U.S. technology industry. As a growing semiconductor manufacturing leader, Arizona will benefit greatly from this legislation as companies from all over the world will be incentivized to consider our state for relocation and large-scale chip investments.”

Media Contact
Alyssa Tufts, Arizona Commerce Authority, [email protected]
 
About the Arizona Commerce Authority
The Arizona Commerce Authority (ACA) is the state's leading economic development organization with a streamlined mission to grow and strengthen Arizona's economy. The ACA uses a three-pronged approach to advance the overall economy: attract, expand, create - attract out-of-state companies to establish operations in Arizona; work with existing companies to expand their business in Arizona and beyond; and help entrepreneurs create new Arizona businesses in targeted industries. For more information, please visit azcommerce.com and follow the ACA on Twitter @azcommerce.