How Arizona Is Competing For The CHIPS Act

PHOENIX, AZ (March 11, 2024) – Arizona is leading the nation in supporting the U.S. CHIPS Act economic and national security objectives. Even before it was signed into law on August 9, 2022, Arizona had one of the fastest-growing and most established semiconductor industries in the world. The passage of the CHIPS Act and new investment and actions from state and industry leaders have accelerated the growth of Arizona’s productive and efficient semiconductor ecosystem.

To maximize opportunities under the CHIPS Act, Arizona, under Governor Katie Hobbs’ leadership, has launched an unprecedented collaborative effort, bringing together stakeholders from state and local governments, industry, trade groups, economic development organizations, universities and community colleges, workforce partners, and more.

These efforts have led to important new initiatives to enhance the state’s semiconductor ecosystem including new industry-led apprenticeships and workforce programs, investments in university infrastructure and R&D, first-of-its kinds training accelerators at community colleges, a national industry roadmap and more.

Read Arizona’s CHIPS Act Fact Sheet

Background
Arizona already has been an early winner of the CHIPS Act. In September, the Department of Defense selected an ASU-led consortium of more than 70 partners, including the ACA, as one of eight Microelectronics Commons regional innovation hubs. The nearly $40 million award for the Southwest Advanced Prototyping (SWAP) Hub was the second-highest amount awarded and represents the first allocation of funding from the CHIPS Act.

In addition, in February, the U.S. Department of State’s Bureau of Economic and Business Affairs awarded a $13.8 million cooperative agreement to ASU under the International Technology Security and Innovation (ITSI) Fund, which is created by the CHIPS Act. The new initiative will bolster the assembly, testing, and packaging capabilities in partner countries in the Americas and Indo-Pacific.

Since January 2020, Arizona has attracted more than 35 announced semiconductor industry expansions representing over 13,000 jobs and over $65 billion in investment, making Arizona no. 1 in the nation for new semiconductor jobs, investment, and supplier expansions.

Arizona has attracted investments from across the semiconductor ecosystem, representing areas like R&D and equipment (Applied Materials, ASM, EMD Electronics, Yield Engineering Systems), materials suppliers (Edwards Vacuum, XNRGY, Sunlit Chemical, LCY Chemical, Chang Chun, NRS Logistics, Air Liquide, Fujifilm Electronic Materials, and more), manufacturing operations (Intel, TSMC), packaging and testing (Amkor) and more.

Quotes
Governor Hobbs
“From new investments in childcare to first-of-their-kind training programs and pioneering industry partnerships, Arizona has mobilized all stakeholders in the support of CHIPS Act opportunities,” said Governor Katie Hobbs. “We are working relentlessly to create good-paying jobs for everyday Arizonans and build our state's economic future. With our investments in creating a state primed for investment from semiconductor companies from around the world, I know Arizona can lead the country in advanced manufacturing and technology jobs.”

Senator Kyrsten Sinema
“Arizona leads in American semiconductor manufacturing. By working with both sides in Washington, we are bringing historic investments from our bipartisan CHIPS and Science law to Arizona – ensuring our state remains a global semiconductor leader, creating strong Arizona careers, and strengthening our national security,” said Arizona senior Senator Kyrsten Sinema.

Senator Mark Kelly
“As a chief negotiator of the CHIPS Act, I knew that bringing microchip manufacturing back to America would benefit Arizona. Even before this law was passed, a wide coalition of stakeholders worked together to make our state the most attractive place for manufacturers and suppliers to establish and grow their operations,” said Arizona Senator Mark Kelly. “Now we are leading the way with the Arizona Small-Scale Supplier Consortium, where microchip suppliers are tackling challenges around workforce, infrastructure, and R&D. These efforts further advance our work to make sure the CHIPS Act delivers good-paying jobs to Arizona.”

Congressman Juan Ciscomani
“Over the last decade, Arizona has become the best place to do business in the country and, more recently, has established itself as a leader in the semiconductor manufacturing industry,” said Congressman Juan Ciscomani. “I am pleased to see local and statewide stakeholders collaborate to leverage all possible opportunities provided by the CHIPS Act, ultimately creating an even more attractive, competitive business environment across the state.”

Congressman Raul Grijalva
“Thanks to President Biden and Congressional Democrats passage of the CHIPS and Science Act, Arizona has been propelled forward as a chip manufacturing leader,” said Congressman Raul Grijalva. “The Arizona CHIPS consortium continues to take advantage of the historic investments made by Democrats to create new good paying jobs and grow our economy. I support their efforts to expand apprenticeship and workforce programs, invest in education initiatives, and improve sustainability.”

Congressman Greg Stanton
“I proudly championed the CHIPS and Science Act in the House because I knew no state in the country stood to benefit more than ours,” said Congressman Greg Stanton. “Arizona is well-positioned to compete for and take advantage of this once in a generation investment—and add even more high-wage, high-tech jobs.”

Intel
"Intel has known Arizona to be an exceptional home for semiconductor manufacturing for more than four decades,” said Zivit Katz-Tsameret, Vice President of Intel Foundry Manufacturing & Supply Chain. “The ecosystem of innovation we’ve helped grow here – which includes a skilled workforce, an extensive supplier network and collaborative engagement and support from state and local government – has continued to enable Intel’s growth. We’re excited to be expanding our Arizona advanced manufacturing and are so proud of our longstanding commitment to our Arizona community."

TSMC
“Since TSMC’s historic announcement in 2020 of our plans to build a leading-edge semiconductor fab in the state, the CHIPS Act legislation was passed, and Arizona has become a top semiconductor innovation cluster in the United States,” said Brian Harrison, President of TSMC Arizona. “When complete, TSMC Arizona will operate the most advanced semiconductor manufacturing technology in the country. To support our operation long-term, we value collaborations which advance our growing supplier ecosystem and bolster local workforce pipeline programs. We are grateful to state leaders, and economic development organizations such as Arizona Commerce Authority for their support of TSMC Arizona and our industry at large on such efforts.”

Phoenix Mayor Kate Gallego
“Phoenix is fast becoming the world’s semiconductor manufacturing hub thanks to major investments ranging the spectrum of the supply chain. We are proud to be leading the charge on re-shoring this critical production and are leveraging the CHIPS Act to sustain the economic impact we are already witnessing for generations to come. Through accessible, targeted workforce initiatives including a first-of-its-kind technician apprenticeship program, Phoenix is building a strong foundation on which to continue driving the success of the semiconductor industry in the Valley,” said Phoenix Mayor Kate Gallego.

Chandler Mayor Kevin Hartke
“Chandler has an extensive history as being a leader in the semiconductor industry,” said Chandler Mayor Kevin Hartke. “Our talented workforce, excellent quality of life, innovative approach to business, and proactive planning have made Chandler uniquely situated to attract these investments. The companies within the Arizona small-scale consortium play a pivotal role in enhancing the economic competitiveness and accelerating the innovation we see in our city and state, and we have already begun to witness the positive impact these companies make in our community.”

Pinal County
“Pinal County is excited and proud to be a foundational partner to support the semiconductor manufacturing ecosystem," said Mike Goodman, Chairman of the Pinal County Board of Supervisors. “Pinal County is bolstered by plentiful, affordable land, and business-friendly communities that continue to invest in key public infrastructure and innovative workforce development programs.”

ASU President Michael Crow
“Reclaiming America’s position as the world’s leader in semiconductor manufacturing, research and development is a vitally important endeavor that requires collaboration and constant innovation,” said Arizona State University President Michael Crow. “Make no mistake, this is an intense, long-term global competition and America’s universities are called upon to play an important role in this process by working with industry and producing the educated workforce that is needed to do this job. The state of Arizona is now a national hub for this effort, attracting established companies and new start-ups, all eager to take on the challenges of a complex process that continues to evolve at a rapid rate. Arizona State University has a responsibility to commit its intellect, energy and resources to the effort, from research and discovery to providing the access and tools for learning. There is much more to do over the coming years and it is very exciting to partner with so many others who share our commitment to making things happen. Arizona will be forever changed by what is happening today.”

University of Arizona President Robert C. Robbins
“Our curriculum-focused partnerships with Pima Community College, Central Arizona College, Northern Arizona University and Chandler Unified School District ensure that we can collectively be efficient in meeting the significant workforce needs of the state over the coming five years – amounting to thousands of new jobs,” said University of Arizona President Robert C. Robbins. “We are leveraging our expertise in modular, digital education to maximum benefit so that we can reach learners in remote and rural communities as well as those who are able to come to campus easily.”

Dr. Andy Wang, Dean of the College of Engineering, Informatics, and Applied Sciences, Northern Arizona University
“Aligned with the CHIPS Act, Northern Arizona University is partnering with AZ SSC Consortium members to offer training and research aimed at supporting Arizona's small-scale semiconductor and microelectronics suppliers in improving metrology-based quality control,” said Andy Wang, Dean of the College of Engineering, Informatics, and Applied Sciences, Northern Arizona University. “This is a critical part of Arizona’s high-tech economy, and NAU is pleased to support the groundbreaking work happening throughout the state.”

Steven R. Gonzales, Chancellor of the Maricopa County Community College District
“Arizona’s rapidly growing semiconductor ecosystem is offering unprecedented economic opportunities that can lead to generational success,” said Dr. Steven R. Gonzales, Chancellor of the Maricopa County Community College District. “Through our unique course offerings and programs like the Semiconductor Technician Quick Start and Future48 Workforce Accelerator, we are proud to take a leading role in working with industry and our partners statewide to prepare Arizonans for the jobs of the future.”

Sandra Watson, President and CEO, Arizona Commerce Authority
“Through efforts such as the Arizona Semiconductor Task Force, Arizona Supplier Consortium, NSER, and much more, the ACA is proud to play a lead role in coordinating our state’s efforts to compete for CHIPS opportunities,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We have unprecedented economic opportunities before us, and we’re grateful to Governor Hobbs, our elected leaders, and all our partners for their work to champion Arizona’s semiconductor industry.”

Danny Seiden, President and CEO, Arizona Chamber of Commerce and Industry
“Arizona leads the nation in semiconductor manufacturing, and with the bipartisan support of the CHIPS Act, we are solidifying our position as a global industry hub,” said Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry. “Through strategic collaborations, innovative apprenticeships, and targeted investments, Arizona is creating a thriving semiconductor ecosystem – attracting worldwide industry players and setting the standard for advanced manufacturing and technology jobs on a monumental scale. We’ve appreciated the leadership of the ACA, our congressional delegation, and all of the stakeholders who’ve worked hard to ensure Arizona benefits from this crucial program, and we look forward to our continued work to further strengthen and ensure U.S. competitiveness and security.”

Chris Camacho, President and CEO, Greater Phoenix Economic Council
“The emergence of the dynamic and competitive semiconductor industry cluster in Greater Phoenix is a result of decades of intentional collaboration from community leaders to build an environment with workforce development opportunities, collaboration between cities, and the business-friendly ecosystem Greater Phoenix is known for today,” said Greater Phoenix Economic Council President & CEO Chris Camacho. “Public and private leaders are prepared to help companies of all sizes capture federal funding as the region continues to grow as an international hub for this vital industry.”

Steven G. Zylstra, President & CEO of Arizona Technology Council & SciTech Institute
“From partnering with our universities to support advancement of a prepared workforce to hosting activities where subject matter experts share their knowledge, experience and expertise, the Council is proud to play a role in drawing attention to Arizona so the rest of the world has reasons to move operations here,” said Steven G. Zylstra, President & CEO of Arizona Technology Council & SciTech Institute.

Read Arizona’s CHIPS Act Fact Sheet

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.