Passage of CHIPS Act Boosts Arizona’s Semiconductor Industry Growth

U.S. Senate Advances Major Semiconductor Legislation, Eyes on House for Final Approval

The race for semiconductor supremacy has taken a significant leap forward as the U.S. Senate passed the CHIPS for America Act, a crucial move aimed at bolstering semiconductor investments and research across Arizona and the nation. This legislation is seen as a pivotal step in maintaining the United States’ competitive edge in the global chip market.

PHOENIX, AZ (July 27, 2022) — The CHIPS Act, a comprehensive plan to enhance semiconductor infrastructure, has gained Senate approval, marking a major victory for Arizona’s burgeoning tech industry. Governor Doug Ducey emphasized how this act could powerfully impact Arizona’s economic landscape, especially in the high-tech sector.

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, stated Governor Ducey. He noted that the Senate’s bipartisan decision pushes them closer to their goal. Arizona’s semiconductor sector is expanding rapidly, evidenced by numerous job creations and substantial financial commitments.

The House of Representatives is anticipated to cast its vote on the CHIPS Act shortly.

For Arizona and the U.S. to stay at the leading edge, our national investment climate must keep pace, Ducey added, pressing for swift House approval and presidential endorsement. Let’s get this done.

The act aims to foster domestic semiconductor production and stimulate research and development initiatives.

We applaud the Senate’s bipartisan passage of the CHIPS for America Act, remarked 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.

Over recent years, Arizona has emerged as a leader in semiconductor investment, with Intel unveiling a $20 billion plan in 2021 to establish two more fabs, generating 3,000 jobs. Similarly, Taiwan Semiconductor Manufacturing Company (TSMC) invested $12 billion in a new Phoenix fab, creating 2,000 jobs. The state houses over 200 semiconductor establishments, employing more than 23,800 individuals, ranking it among the top four in the nation.

This legislative progress has received commendation from Arizona’s local authorities.

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, Gallego asserted, highlighting the city’s growing role as a semiconductor hub.

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, Hartke mentioned, acknowledging the global scale of semiconductor operations and the competition to attract future investment.

Casa Grande Mayor Craig McFarland:

Passage of the CHIPS Act is a game changer for Arizona’s growing semiconductor industry, McFarland stated, recognizing the act’s potential to bring well-paying jobs and further investments to local areas.

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, Crow expressed, pointing to Arizona State University’s readiness to contribute to the national effort.

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 commented, emphasizing Arizona’s strategic advantages.

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, Zylstra noted, underlining the importance of the CHIPS Act in achieving this goal and its benefits for Arizona.

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. For more information, please visit azcommerce.com and follow the ACA on Twitter @azcommerce.