ARIZONA NEWS

Arizona leaders thrilled after Senate passes $52B microchip industry investment

Jul 27, 2022, 1:40 PM

PHOENIX – Arizona leaders celebrated Wednesday after Congress moved closer to passing a massive investment in the microchip industry, which is already booming in the Grand Canyon State.

The Senate approved the bipartisan measure by a 64-33 margin, including two resounding yes votes from Arizona. The House vote is expected later this week.

“For decades, some ‘experts’ said we needed to give up on manufacturing in America. I never believed that. Manufacturing jobs are back,” President Joe Biden said. “Thanks to this bill, we are going to have even more of them. The House should promptly pass it and send this bill to my desk.”

The bill includes more than $52 billion in grants and other incentives for the semiconductor industry as well as a 25% tax credit for those companies that invest in chip plants in the U.S. It also calls for spending about $200 billion for various research activities over 10 years, though Congress will have to follow through by including that money in future spending bills.

“That will mean tens of thousands of new jobs in places like Arizona, which is already a microchip hub poised to grow as Intel and the Taiwan Semiconductor Manufacturing Company expand and build new manufacturing facilities,” Sen. Mark Kelly said on the Senate floor after the Wednesday’s vote.

“That is all made possible by this legislation, and it creates jobs not just with those companies, but also with the companies that supply them the tools and packaging for their products.”

TSMC is building a factory in north Phoenix and Intel is expanding its microchip production in Chandler in a pair of multibillion-dollar projects.

“Today’s critical passage of our bipartisan legislation boosting semiconductor manufacturing in Arizona and investing historic resources in science and innovation will lower costs for families, strengthen our supply chains, support countless high-paying jobs, strengthen our national security – and, most importantly, stand the test of time. I’m proud of the lasting results our bill delivers for Arizonans,” Sen. Kyrsten Sinema said in a press release.

House Speaker Nancy Pelosi, D-Calif., has said she is confident there is enough GOP support to overcome potential defections from Democrats who view the subsidy effort to boost semiconductor companies as a misplaced priority.

Gov. Doug Ducey, Arizona’s Republican governor, is hoping Pelosi is right.

“For Arizona and the U.S. to stay at the leading edge, our national investment climate must keep pace,” Ducey said in the press release and on social media. “I urge swift passage in the U.S. House of Representatives and a signature from the president. Let’s get this done.”

Here are some responses from other local leaders, as provided by the Arizona Commerce Authority:

Phoenix Mayor Kate Gallego: “We are fast becoming the United States epicenter for semiconductor excellence, complete with jobs and world-class training programs producing top talent. Passage of the CHIPS Act will have lasting impacts for the semiconductor industry and its suppliers, and it is critical to the competitiveness and innovation economy in Arizona and throughout the country.”

Chandler Mayor Kevin Hartke: “Semiconductor manufacturers operate on a global scale and can choose to make their next investment anywhere in the world. Passage of the CHIPS for America Act is critical to competing for future advanced chip operations and we are grateful to our federal partners for taking this important step forward.”

Michael Crow, president of Arizona State University: “We appreciate the bipartisan efforts, the work of economic development leaders throughout the state, and the governor and Arizona Commerce Authority’s leadership to make passage of the CHIPS Act a priority, work that follows what has been done at the state. The road ahead will require continued collaboration and a national network of contributors, and ASU is eager to put all of its resources to work for maximum impact.”

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.”

The Associated Press contributed to this report.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Stock image of a person carrying an umbrella in cold weather. The Phoenix forecast calls for cool t...

Kevin Stone

Chilling out: Upcoming Valley weather includes highs in 60s, possibility of rain

A weather system of cool air is poised to chill the Valley later this week and possibly bring rain to the Phoenix area.

1 hour ago

Bus through residence...

KTAR.com

2 suspects on the run after bus crashes into home in Mesa; several injured

Several people were injured and two people were on the run after a bus crashed into a home in Mesa on Monday, authorities said.

2 hours ago

Bales of hay are stored under shelters at Al Dahra Farms, Tuesday, Oct. 17, 2023, in the McMullen V...

Associated Press

Tensions over water are bubbling up at thirsty rural Arizona alfalfa farms

Worries about future water supplies from the McMullen Valley's ancient aquifers are bubbling up in rural western Arizona.

4 hours ago

Mugshot of Ivanka Koleva, who was arrested Monday, Nov. 27, 2023, for alleged involvement in her hu...

KTAR.com

Woman arrested for allegedly killing husband in Gilbert

A woman was arrested Monday in connection to her alleged involvement in her husband's death last week in Gilbert.

5 hours ago

Example of ADU or "casita"...

Damon Allred

Tempe seeking public input on accessible dwelling unit expansion

The city of Tempe will continue to mull over their options regarding the expanded use of accessory dwelling units, seeking more public input.

6 hours ago

aerial view of downtown Chandler...

Damon Allred

Maricopa County invests $10 million in Chandler housing

The Maricopa County Board of Supervisors approved a $10 million investment into low-income housing in Chandler, the board announced Monday.

6 hours ago

Sponsored Articles

Follow @KTAR923...

The 2023 Diamondbacks are a good example to count on the underdog

The Arizona Diamondbacks made the World Series as a surprise. That they made the playoffs at all, got past the Milwaukee Brewers in the NL Wild Card round, swept the Los Angeles Dodgers in the NLDS and won two road games in Philadelphia to close out a full seven-game NLCS went against every expectation. Now, […]

...

Desert Institute for Spine Care

Desert Institute for Spine Care (DISC) wants to help Valley residents address back, neck issues through awake spine surgery

As the weather begins to change, those with back issues can no longer rely on the dry heat to aid their backs. That's where DISC comes in.

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Importance of AC maintenance after Arizona’s excruciating heat wave

An air conditioning unit in Phoenix is vital to living a comfortable life inside, away from triple-digit heat.

Arizona leaders thrilled after Senate passes $52B microchip industry investment