{"id":1004522744,"date":"2021-04-21T03:48:31","date_gmt":"2021-04-21T11:48:31","guid":{"rendered":"http:\/\/internal.cpexecutive.com\/?p=1004522744"},"modified":"2023-02-22T02:39:06","modified_gmt":"2023-02-22T10:39:06","slug":"can-phoenix-become-americas-semiconductor-capital","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/can-phoenix-become-americas-semiconductor-capital\/","title":{"rendered":"Can Phoenix Become America\u2019s Semiconductor Capital?"},"content":{"rendered":"
\"semiconductor

Image by Dan Williams via pixabay.com<\/p><\/div>\n

Over the past 30 years, the share of global semiconductor manufacturing capacity in the U.S. has dropped from 37 percent to 12 percent, according to the Semiconductor Industry Association. In light of the global semiconductor shortage, however, the U.S. is becoming more aware of the need to strengthen its chip manufacturing ecosystem.<\/p>\n

Thanks to a large existing cluster of industry-leading firms and recent major announcements\u2014such as Taiwan Semiconductor Manufacturing Co.\u2019s $12 billion and Intel Corp.\u2019s $20 billion chipmaking plants\u2014the Greater Phoenix metro is poised to become a major player in America\u2019s semiconductor manufacturing industry.<\/p>\n

Phoenix\u2019s history with semiconductor companies dates back to 1949, when Motorola opened a facility in the region. \u201cToday, many industry leaders call Greater Phoenix home, with operations from Intel Corp., ON Semiconductor, NXP Semiconductors, Microchip Technology and others,\u201d Chris Camacho, president & CEO of the Greater Phoenix Economic Council, told\u00a0Commercial Property Executive.\u00a0<\/em><\/p>\n

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READ ALSO:\u00a0<\/strong>Analysis: The Infrastructure Plan, CRE and the Economy<\/a><\/p>\n

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Having a well-established semiconductor hub makes Greater Phoenix a magnet for giants such as TSMC. However, the metro also earns points because it has plenty of available land, a large talent pool, lack of natural disasters, a favorable tax environment and a strong infrastructure, Camacho noted.<\/p>\n

\u201cCombined, these factors create the necessary requirement to achieve operational efficiency and cost controls. Greater Phoenix scores high marks across all categories and that\u2019s why we\u2019ve seen growth in this sector,\u201d Camacho said. Beyond all these positive factors, securing major investments is also a result of a statewide collaborative effort, backed by federal policies such as the CHIPS for America Act, according to Camacho.<\/p>\n

Semiconductors and other electronic components represent Arizona\u2019s and the Phoenix metro area\u2019s largest export category, totaling $3.5 billion in 2019 and $2.9 billion in 2018, Camacho further explained. Additionally, he pointed out, Greater Phoenix is home to 22,203 semiconductor and related device manufacturing jobs, with the average wage in the industry at $135,345.<\/p>\n

Economic and workforce impact<\/strong><\/h2>\n

According to an Intel report detailing the company\u2019s nationwide economic impact, Intel\u2019s total employment impact in Arizona was 58,000 jobs, representing 1.5 percent of the state\u2019s total jobs. What is more, the company unveiled that it has contributed $3.9 billion to Arizona\u2019s GDP in 2019.<\/p>\n

Research by the Greater Phoenix Economic Council shows that Intel has more than 11,000 employees in Greater Phoenix and the company spends in excess of $500 million every year to support research and development into areas such as packaging and autonomous vehicles.<\/p>\n

\"\"<\/a>

The map above displays the presence of semiconductors and related industry companies in the Greater Phoenix region. Map courtesy of Greater Phoenix Economic Council<\/em><\/p><\/div>\n

Beyond all these, recent investments from TSMC and Intel alone are expected to create approximately 5,000 direct, high-wage jobs, as well as thousands of indirect positions for suppliers and other firms within the semiconductor industry in the next few years.<\/p>\n

\u201cThe announcement of TSMC alone has a significant economic impact, but the trickle-down effects of this investment are much greater,\u201d said Jennifer Mellor, vice president of economic development at the Greater Phoenix Chamber.<\/p>\n

Many foreign and domestic suppliers announced their intentions to expand into Greater Phoenix, strengthening the state\u2019s semiconductor manufacturing sector. \u201cThese suppliers will require business services like accounting, legal and consulting. The increased employment base will also drive up housing demand and many other sectors of the economy such as health care, retail and hospitality,\u201d Mellor explained.<\/p>\n

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READ ALSO:\u00a0<\/strong>Phoenix Market Update: Suburban Assets Lead Activity<\/a><\/p>\n

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TSMC\u2019s investment into the Phoenix mega-site will include six factories and will be one of the largest foreign direct investments in the U.S. The firm plans to spend $12 billion between 2021 to 2029. TSMC Spokesperson Nina Kao confirmed for\u00a0CPE <\/em>that the company is executing their plan in Arizona according to schedule and construction on the first phase will start this year, with the facility operational by 2024.<\/p>\n

\u201cForeign direct investment strengthens U.S. economic competitiveness. It creates jobs, lifts personal incomes, broadens economic development in America, enables U.S. technology companies and deepens U.S. innovation,\u201d TSMC\u2019s Chairman Dr. Mark Liu said during the White House Chip Summit held last week.<\/p>\n

TSMC\u2019s announcement put Arizona in the spotlight of international media as a business-friendly environment, with a diverse talent pool. \u201cThis international attention led to Arizona being on Samsung\u2019s shortlist for their $17 billion chip plant. With increased foreign investment, airlines are much more likely to consider new international flights from Phoenix, such as a direct flight to Asia,\u201d Mellor said.<\/p>\n

Nonetheless, Phoenix was already on the path to great economic expansion even before these big announcements. In 2019, Arizona was second in job growth nationwide and now the state is the ninth-fastest in job recovery.<\/p>\n

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READ ALSO:\u00a0<\/strong>Phoenix Mixed-Use Project Takes a Giant Step<\/a><\/p>\n

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\u201cWe have continued to see significant growth across multiple industries, especially in advanced manufacturing and IT. TSMC and Intel were big area growth announcements that made the headlines, but there are several other recent relocations and expansions that are taking place in Phoenix, such as Electra Meccanica and APEL Extrusions,\u201d Mellor explained.<\/p>\n

Camacho also noted that it\u2019s not just the semiconductor companies<\/a> that are making an impact in Greater Phoenix. \u201cIn the last decade, 238 manufacturing operations relocated or expanded in Greater Phoenix. Thirty-eight percent, or 90 of the 238, were in 2018 and 2019 alone. According to Emsi, Greater Phoenix\u2019s competitive position is expected to net more than 5,400 new manufacturing jobs by 2025,\u201d he concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"

A close-up on what recent major investments mean for Greater Phoenix and its economy. <\/p>\n","protected":false},"author":871,"featured_media":1004528226,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21808,21748,21783,21742,1601,15],"tags":[32798],"class_list":["post-1004522744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-featured","category-industrial","category-investment","category-latest","category-phoenix","category-west","tag-greater-phoenix-economic-council"],"acf":[],"yoast_head":"\nCan Phoenix Become America\u2019s Semiconductor Capital? - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/can-phoenix-become-americas-semiconductor-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can Phoenix Become America\u2019s Semiconductor Capital?\" \/>\n<meta property=\"og:description\" content=\"A close-up on what recent major investments mean for Greater Phoenix and its economy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/can-phoenix-become-americas-semiconductor-capital\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-21T11:48:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-22T10:39:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/semiconductor.-Image-courtesy-of-Dan-Williams-from-Pixabay-.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Evelyn Jozsa\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/can-phoenix-become-americas-semiconductor-capital\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/can-phoenix-become-americas-semiconductor-capital\/\",\"name\":\"Can Phoenix Become America\u2019s Semiconductor Capital? 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