Arizona’s Leading Role in Maximizing CHIPS Act Semiconductor Growth

Arizona’s Strategic Push in the Semiconductor Industry

PHOENIX, AZ (March 11, 2024) – Arizona is at the forefront of initiatives under the U.S. CHIPS Act, aligning with both economic and national security goals. Even before the CHIPS Act became law in August 2022, Arizona’s semiconductor sector was expanding rapidly. The Act’s enactment has further propelled Arizona’s semiconductor infrastructure, thanks to investments and initiatives spearheaded by the state and industry leaders.

Under Governor Katie Hobbs, Arizona has initiated an unparalleled collaborative effort. This involves a coalition of state and local governments, industry stakeholders, trade groups, educational institutions, and workforce partners, all focused on tapping into opportunities provided by the CHIPS Act.

Key initiatives include industry-led apprenticeships, enhanced workforce programs, university infrastructure investments, and pioneering training accelerators at community colleges. These efforts are complemented by a national industry roadmap to fortify Arizona’s semiconductor sector.

Explore Arizona’s CHIPS Act Fact Sheet

Background
Arizona has quickly capitalized on the CHIPS Act. In September, an ASU-led consortium, including over 70 partners, was designated by the Department of Defense as one of eight Microelectronics Commons regional innovation hubs. This initiative, the Southwest Advanced Prototyping (SWAP) Hub, received nearly $40 million, marking the second-largest funding allocation from the CHIPS Act.

Moreover, in February, ASU received a $13.8 million cooperative agreement under the International Technology Security and Innovation (ITSI) Fund, a CHIPS Act creation. This initiative aims to enhance assembly, testing, and packaging capabilities in the Americas and Indo-Pacific partner countries.

Since January 2020, Arizona has seen over 35 semiconductor industry announcements, bringing more than 13,000 jobs and $65 billion in investments, leading the nation in semiconductor job creation, investments, and supplier expansions.

Investments span across research and development, equipment, materials suppliers, manufacturing operations, and packaging and testing. Notable companies include Applied Materials, ASM, and EMD Electronics, among others.

Stakeholder Perspectives

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, stated Governor Katie Hobbs.

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 … expressed 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 … remarked Senator Mark Kelly.

Congressman Juan Ciscomani
Over the last decade, Arizona has become the best place to do business in the country … noted Congressman Juan Ciscomani.

Phoenix Mayor Kate Gallego
Phoenix is fast becoming the world’s semiconductor manufacturing hub … mentioned Mayor Kate Gallego.

ASU President Michael Crow
Reclaiming America’s position as the world’s leader in semiconductor manufacturing … said ASU President Michael Crow.

Arizona’s concerted efforts in the semiconductor industry are a testament to the state’s commitment to advancing technology and creating significant economic opportunities.

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, visit azcommerce.com.