Phoenix breaks San Francisco’s monopoly, grabs major semiconductor-industry trade show

Article originally posted on AZ Central on July 10, 2024

Semiconductor manufacturing is on a roll, and Arizona is grabbing a significant piece of that vital industry along with national recognition of its role.

The latest indication: A major industry trade show will be held in Phoenix on a rotating basis starting in 2025, after 50 consecutive years in San Francisco.

SEMICON West, North America’s premier microelectronics exhibition and conference, will also be held here in 2027 and 2029, the Arizona Commerce Authority announced. All three Arizona events will be held at the Phoenix Convention Center. The show, scheduled for October, could bring more than 10,000 attendees and hundreds of exhibitors.

The announcement is the latest in a string of successes for Arizona’s semiconductor industry, highlighted by a factory complex under construction in north Phoenix by Taiwan Semiconductor Manufacturing Co., the state’s largest private investment ever, and a sizable expansion of Intel’s complex in Chandler.That’s in addition to numerous suppliers and related firms locating or expanding in the Phoenix area, including announcements by Amkor Technology, Applied Materials, EMD Electronics, Edwards Vacuum and Fujifilm Electronics Materials, in addition to enhanced workforce-training programs involving Arizona State University, the University of Arizona, Northern Arizona University, Maricopa Community Colleges and others.

Semiconductors are used in an increasing array of modern machinery and gadgets — everything from cars and cellphones to laptop computers, medical devices, power components and military weaponry.

The U.S. industry has been rejuvenated by passage of the CHIPS and Science Act in 2022, and Arizona has assumed a role of growing significance, landing 19 of the 83 new projects that were cited in a recent report by the Semiconductor Industry Association. The projects include new factories or “fabs” along with fab expansions and investments by suppliers.

The trade group, in conjunction with Boston Consulting Group, projects that the U.S. will triple its domestic manufacturing capability between 2022, when the CHIPS Act was enacted, and 2032. The industry association also estimates that global semiconductor sales this year will hit a record $611 billion.

In March, Intel received up to $8.5 billion in funding under the CHIPS Act to support the company’s $34.5 billion investment here, and TSMC received $6.6 billion in funding to spur its $65 billion Arizona investment, which is expected to create more than 6,000 jobs.

Since 2020, the Commerce Authority reports that the state has won more than 40 semiconductor expansions, representing over $102 billion in capital investment and more than 15,700 direct jobs. These projects encompass manufacturing, the advanced packaging of chips, research and development efforts, supply chain expansions and workforce development. The investments have mounted despite concerns over water and power availability, emissions and a sufficient supply of workers.

The Semiconductor Industry Association, in conjunction with Boston Consulting Group, projects that the U.S. will triple its domestic manufacturing capability between 2022, when the CHIPS Act was enacted, and 2032.