Arizona's semiconductor sector has been a decades-long growth catalyst - Phoenix Business Journal

Intel Corp.'s existing chip fab and $20 billion expansion in Chandler, in addition to Onsemi and Microchip Technology Inc., have helped build up the Valley's semiconductor ecosystem and paved the way to attract TSMC and future suppliers to the Valley, experts say.

The semiconductor industry, which first moved into Phoenix around 1950 with Motorola, supports technologies dependent on chips thatThis entire process of a producing a chipand more than 1,000 steps — and cross international borders 70 times — before reaching an end customer, according to the Center for Security and Emerging Technology at Georgetown University.

"Some are starting their first U.S. operations in Arizona, and others are expanding their U.S. operations.," Nina Kao, head of TSMC public relations, said in an email."They bring new strengths to the U.S. semiconductor supply chain and will contribute greatly in ramping up leading-edge chip manufacturing. When our Arizona fab is complete, TSMC’s customers will benefit from having the proximity of a world-class foundry and the supply chain that surrounds this industry.

"Some of these semiconductor firms, they might look at a different supplier," said Hess, who has worked with well-known clients in the semiconductor industry."If you're already there in Arizona, you're captive to Intel — that's great that TSMC is in town so you can have some diversity."In the 1980s, Intel spurred a similar handful of chemical companies, such as Air Products, to come to the southeast Valley and Chandler, the Greater Phoenix Economic Council said.

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