PHOENIX — The same technology powering your phone, your car, and even the screen you’re reading this on is fueling a massive economic boom in Arizona. Semiconductors, often called “chips”, are at the center of it.
A global semiconductor conference held in downtown Phoenix for the first time is highlighting just how quickly Arizona has become a major player in the industry, especially following Taiwan Semiconductor Manufacturing Company (TSMC) setting up operations in north Phoenix.
Industry leaders say Arizona’s rise has been years in the making.
“The contacts we have in this industry said, ‘hey, you should try Arizona for the first time,’” said Pratheeva Kotalawela, CEO of Data Edge Media, which organizes the Global Semiconductor Hub. “Looking at the semiconductor space, looking at what’s happening in Arizona with the expansion of TSMC and expansion of Intel, they said, 'Hey, this is the place to be.'”
From smartphones to self-driving cars, semiconductors are now essential to nearly every part of daily life.
“For one, you see the innovation that is happening in your phone, your car, a Waymo on the street,” said Patrick Ptak with the Arizona Commerce Authority. “All that is happening because of semiconductors, and increasingly semiconductors that are made here.”
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According to Ptak, since 2020, more than 50 semiconductor projects have either expanded or broken ground across Arizona.
But manufacturing semiconductors is resource-intensive. It requires large amounts of water, energy, and chemicals, raising concerns among some community groups.
“Phoenix is a hot place,” said Brenda Rodriguez with Chips Communities United. “And the energy consumption of these mega-fabs is going to have a huge impact on the utility grid.”
Groups like hers say they support domestic chip production but want to ensure growth doesn’t come at the expense of local communities, while state and industry leaders argue Arizona is prepared.
They point to advanced water recycling systems and newer, more energy-efficient fabrication plants designed specifically for desert conditions.
“To make sure that, for example, TSMC is getting the inputs they need, the water, the energy, but also that our grid for residences and everyone will be stable,” Ptak said.
Still, watchdog groups say they’ll continue monitoring how resources are used as the industry expands.
“Not just looking at their bottom line,” Rodriguez said. “But the people, their consumers, their neighbors, and their workers.”
From construction cranes across the Valley to international conferences choosing Phoenix, the momentum is clear. Arizona’s reputation in the semiconductor world is only growing.
“It’s a global community,” Kotalawela said. “We take that message across saying Arizona is the place to be.”
The U.S. government says current investments could put the country on track to produce 20% of the world’s semiconductors by 2030, with Arizona playing a major role.
