Arizona allocates $100M to nurture blossoming semiconductor industry
Nov 4, 2022, 1:08 PM
PHOENIX – Arizona is allocating $100 million in federal funding to juice the state’s semiconductor industry, which is already booming, Gov. Doug Ducey announced Friday.
“Arizona has earned a place as one of the world’s leading destinations for chip design, manufacturing and innovation,” Ducey said in a press release.
“With historic opportunities before us, this funding ensures we make the most of this moment and cement our semiconductor leadership for decades to come.”
The funding is coming out of money Arizona received via the 2021 American Rescue Plan Act COVID relief package, a spokesman for Ducey’s office said.
— Doug Ducey (@DougDucey) November 4, 2022
The Arizona Commerce Authority will manage the allocation, which will in part be used to help the state take advantage of opportunities under the CHIPS Act, the $280 billion legislation aimed at bolstering U.S. competitiveness against China.
Arizona Sen. Mark Kelly cosponsored and helped craft the bipartisan CHIPS Act, which President Joe Biden signed in August and includes $52 million for the nation’s semiconductor industry.
Semiconductors, the small critical chips used in everyday electronics, are becoming a big part in Arizona’s economy. The Taiwan Semiconductor Manufacturing Company and Intel are building multibillion-dollar microchip production facilities in the Valley, spurring other businesses in the industry to set up shop in the area.
Ducey visited Taiwan recently to encourage semiconductor suppliers to make investments in Arizona.
“By investing in our advanced manufacturing workforce and core research capabilities, this funding promises to take that transformation even further,” Sandra Watson, Arizona Commerce Authority president and CEO, said in Friday’s release.
The Associated Press contributed to this report.