Historic funding increases Arizona competitiveness for additional public, private investment
PHOENIX – Governor Doug Ducey announced today a historic $100 million investment in Arizona’s fast-growing semiconductor industry to spur greater growth in a critical sector of the state’s economy.
“Arizona has earned a place as one of the world’s leading destinations for chip design, manufacturing and innovation,” said Governor Ducey. “With historic opportunities before us, this funding ensures we make the most of this moment and cement our semiconductor leadership for decades to come. My thanks to all our partners in the private sector and higher education for their commitment to expanding our high-tech economy.”
Arizona has grown into a premier semiconductor destination. Today’s consequential funding capitalizes on that momentum, aiming to establish a world-class public-private partnership focused on the development and manufacturing of next-generation semiconductor technologies.
The funding will be managed by the Arizona Commerce Authority to further enhance Arizona’s semiconductor infrastructure, workforce, and research capabilities. In addition, it will help maximize the state’s competitive position for research and development opportunities under the CHIPS Act while spurring additional private sector investment.
“Under Governor Ducey’s leadership, Arizona’s economy has experienced unprecedented diversification and high-tech growth,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “By investing in our advanced manufacturing workforce and core research capabilities, this funding promises to take that transformation even further. I am grateful to Governor Ducey for his visionary leadership and for making this historic investment in our semiconductor ecosystem.”
Passage of the CHIPS Act earlier this year catalyzed unique opportunities for the U.S. to attract and grow private sector investments in semiconductor equipment and materials, design, manufacturing, advanced packaging and cutting-edge research.
Arizona’s new investment seeks to capitalize on these opportunities and will focus on the accelerated development, commercialization and manufacturing of next-generation U.S. semiconductor-based technologies while working alongside industry partners to identify and address research infrastructure and workforce needs.
Recently, Forbes labeled Arizona “Semiconductor Central” following a string of high-profile semiconductor wins. Intel announced in March 2021 a $20 billion investment to build two additional fabs in the state, creating 3,000 jobs. Taiwan Semiconductor Manufacturing Company (TSMC) announced in May 2020 an investment of $12 billion to build a new fab in Phoenix, creating 2,000 jobs.
Arizona also has helped convene multi-state conversations around the U.S. semiconductor environment through the advancement of the National Semiconductor Economic Roadmap. The coalition, which has plans to publish a final roadmap in the coming weeks, is led by industry and includes active participation from academia and other states.