Arizona industry leaders launch first-of-its-kind National Semiconductor Economic Roadmap

The Arizona Commerce Authority announced the formation of the National Semiconductor Economic Roadmap on Tuesday. Tasked with furthering collaboration between private industry, the public sector, and higher education “to future-proof semiconductor manufacturing in the United States,” the Roadmap is a first-of-its-kind endeavor.

Citing the surging global demand for semiconductors and microchips, stakeholders involved in the project — including the ACA, Intel, and Taiwan Semiconductor Manufacturing Company (TSMC) — believe that there must be more attention paid to the semiconductor industry. 

“Today more than ever, we see the strategic importance of a robust U.S. semiconductor industry,” Intel CEO Pat Gelsinger said. “Fostering deeper partnerships with our research institutions, universities, defense institutions, state leaders, and more will be critical to our long-term economic and national security, and we are pleased to join this worthwhile effort.”

TSMC Arizona’s CEO and President Rick Cassidy said there are particular elements essential to a thriving semiconductor sector.

“A thriving semiconductor ecosystem requires solid infrastructure, a comprehensive supply chain, and a steady inflow of talented and dedicated people,” he said. 

Both Intel and TSMC recently made historic investments in the state and their semiconductor manufacturing operations.

Arizona’s semiconductor boom

Intel this month officially broke ground on a new chip-making operation in Chandler, a $20 billion investment that is the largest single-time investment in Arizona to-date. 

“We want to have Arizona and Intel be the unquestioned leaders for the world’s supply of leading-edge semiconductors,” Gelsinger said.

TSMC is building a $12 billion chip-making factory in north Phoenix. The company plans to build as many as six factories at the Arizona site over the next decade.

Several factors have contributed to Arizona’s growing semiconductor manufacturing operations, including its welcoming business environment characterized by favorable tax rates, a lighter regulatory burden than neighboring states like California, and world-class universities. 

Federal policies aimed at encouraging chip-making have also drawn companies to break new ground, though the surging demand for semiconductors already showed the market that more manufacturing capacity was desperately needed.

“Today’s groundbreaking ushers in a new landscape for Arizona semiconductor production, ” Gov. Doug Ducey said at the Intel groundbreaking ceremony.