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$270M Investment Boosts Arizona’s Semiconductor Industry Growth

Arizona’s Semiconductor Industry Boosted by Major Investment

In a significant move to enhance Arizona’s position in the semiconductor sector, more than $270 million has been committed by corporate and state entities. This substantial investment is poised to establish a new research hub at Arizona State University (ASU), emphasizing the state’s growing importance in microelectronics.

TEMPE, AZ (July 11, 2023) – ASU has teamed up with Applied Materials, Inc., with support from the Arizona Commerce Authority, to create the Materials-to-Fab (MTF) Center. This innovative facility will be situated in the MacroTechnology Works building at ASU Research Park, designed to transition semiconductor innovations from concept to prototype.

The MTF Center aims to streamline the journey from ideation to prototype by integrating Applied Materials’ advanced semiconductor manufacturing tools into a collaborative space. Here, ASU and Applied Materials will work alongside industry partners, startups, government agencies, and other academic institutions. Students and faculty will benefit from hands-on experiences with the latest 300mm equipment used in cutting-edge production settings.

As the leading provider of semiconductor manufacturing equipment globally, Applied Materials previously announced plans for an Equipment and Process Innovation and Commercialization (EPIC) Center in Silicon Valley. This center is envisioned as part of a dynamic innovation network, with the MTF Center at ASU focused on materials deposition technology.

High-quality universities are one of America’s greatest advantages in the global competition for semiconductor manufacturing, research and development, stated Governor Katie Hobbs, highlighting the strategic nature of the ASU and Applied Materials partnership. The successful implementation of the Materials-to-Fab facility will establish an innovation and job creation engine for the semiconductor ecosystem in Arizona.

ASU President Michael Crow emphasized the broader impact of the collaboration, stating, This is the beginning of a reconfiguration of the way to accelerate discovery and translational research outcomes in response to real-world challenges. Meanwhile, Gary Dickerson, President and CEO of Applied Materials, expressed enthusiasm about the partnership, noting its potential to drive materials engineering innovations and strengthen the industry talent pipeline.

The MTF Center is expected to be operational within two years, with design already underway. This endeavor is backed by $30 million from the Arizona Commerce Authority, $17 million from ASU, and additional funding from the Arizona New Economy Initiative. Notably, Applied Materials plans to invest over $200 million, including in capital, equipment, and research funding.

Ajit Manocha, President and CEO of SEMI, emphasized the critical role of partnerships in workforce development, remarking, Partnerships between industry, academia, and governments – such as the collaboration between Applied Materials, Arizona State University, and the Arizona state government – will be key to the success of our efforts.

To foster an inclusive workforce, Applied Materials intends to establish an endowment fund for scholarships to first-generation and underrepresented minority students in ASU’s Fulton Schools of Engineering. The Applied Materials Momentum Fund will also support women nearing completion of their engineering degrees at ASU, addressing financial barriers and aiding their entry into the semiconductor field.

Arizona’s status as a hub for microelectronics is underscored by its array of leading semiconductor producers, defense contractors, and a vibrant startup ecosystem. The MTF Center will serve as a pivotal resource for companies across the state and the southwest, fostering academic-industry collaboration in line with the CHIPS and Science Act objectives.

According to Sandra Watson, President and CEO of the Arizona Commerce Authority, The MTF Center will accelerate the development, commercialization, and manufacturing of next-generation U.S. semiconductor-based technologies while bolstering the state’s infrastructure, workforce, and research capabilities. ASU’s President Crow summed up the alliance’s potential, noting, This is work that is never finished, so as exciting as it is to be where we are today, you can expect to hear more from us on this front in the future.

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