Nov 10, 2022 - Business

Ducey awards $100M for semiconductor boost

Photo illustration of Arizona Governor Doug Ducey with lines radiating from him.

Photo illustration: Brendan Lynch/Axios. Photo: Michael Brochstein/SOPA Images/LightRocket via Getty Images

Gov. Doug Ducey is allocating $100 million worth of federal funding to boost the state's growing semiconductor industry.

Driving the news: Ducey announced last week that he was awarding $100 million that the state received from the American Rescue Plan Act to the Arizona Commerce Authority (ACA).

  • He called the funding a "historic investment in our semiconductor ecosystem."

Details: ACA spokesperson Patrick Ptak tells Axios that the primary purpose of the funding is to strengthen Arizona's ability to compete for grants made available through the CHIPS and Science Act, which is intended to expand semiconductor manufacturing in the U.S.

  • The legislation includes $11 billion for research and development and $39 billion to accelerate semiconductor production, including $6 billion worth of grants and loans.

Why it matters: Semiconductors are a critical component of modern technology, and the industry is growing in Arizona.

  • Taiwan Semiconductor Manufacturing C0. (TSMC) is building a massive facility in north Phoenix that's expected to begin production in 2024. State leaders hope it will help turn Arizona into a major hub for semiconductor manufacturing.
  • TSMC is also considering a major expansion of the facility, which is already under construction, the Wall Street Journal reported yesterday.
  • Chang Chun Arizona broke ground on a manufacturing facility in Casa Grande last month that will provide chemicals for semiconductor production.

What we're watching: The ACA isn't saying yet exactly what it will spend the money on.

  • Ptak says only that the money will be used for infrastructure, workforce development and research, and that more information will become available in the coming weeks.
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