How Arizona is positioning itself for $52 billion in the chip industry
The state has become a hub for chipmakers including Intel and TSMC as the government prepares to release a source of funds for strategic industry.
In recent weeks, Commerce Secretary Gina Raimondo has spoken with Senator Mark Kelly of Arizona, spent time with the president of Arizona State University and participated in a conference with the mayor of Phoenix.
Their discussions focused on one main topic: fleas.
Mrs. Raimondo is responsible for doling out $52 billion for semiconductor manufacturing and research under the CHIPS Act, a funding program to expand domestic production of the fundamental technology, which acts as the brains of computers. The legislation, which was passed in August, is a key part of President Biden's industrial policy and part of an effort to secure America's economic and technological leadership over China.
Arizona wants to make sure it's in position for a portion of this single source of federal funding, for which the Commerce Department should begin accepting applications within days. As a result, Arizona officials swamped Ms. Raimondo to promote the state's growing chip industry and spoke with chief executives of giant chip companies such as Intel and Taiwan Semiconductor Manufacturing Company. p>
Arizona, which is competing for grants with Texas, New York and Ohio, may have a head start on the action. The state has been home to semiconductor manufacturers since the 1940s and has 115 chip-related companies, while there is one major manufacturer in Ohio.
Arizona has also led the nation in chip investment since 2020, with announcements of two new chip factories by TSMC and two additional factories by Intel that will cost a total of $60 billion. Heads of state had helped persuade companies to open the facilities by offering major tax breaks and subsidies for water and other infrastructure. They also promised to expand technical and engineering education in the state.
State officials and chip companies also acted as a lobbying bloc in Washington. They helped shape the CHIPS Act to include federal tax credits, grants, and research and labor grants. TSMC has expanded its lobbying staff to 19 from two in two years, and Intel spent more than $7 million on lobbying efforts last year, the most it has spent in two decades. Arizona State University spent $502,000 on lobbying last year, also the most in two decades.
“It has been an intentional and on-deck effort," said Sandra Watson, president of the Arizona Commerce Authority, a nonprofit economic development organization that has helped lead the state's efforts to attract chip companies and lobbying for the CHIPS Act.
The state has become a hub for chipmakers including Intel and TSMC as the government prepares to release a source of funds for strategic industry.
In recent weeks, Commerce Secretary Gina Raimondo has spoken with Senator Mark Kelly of Arizona, spent time with the president of Arizona State University and participated in a conference with the mayor of Phoenix.
Their discussions focused on one main topic: fleas.
Mrs. Raimondo is responsible for doling out $52 billion for semiconductor manufacturing and research under the CHIPS Act, a funding program to expand domestic production of the fundamental technology, which acts as the brains of computers. The legislation, which was passed in August, is a key part of President Biden's industrial policy and part of an effort to secure America's economic and technological leadership over China.
Arizona wants to make sure it's in position for a portion of this single source of federal funding, for which the Commerce Department should begin accepting applications within days. As a result, Arizona officials swamped Ms. Raimondo to promote the state's growing chip industry and spoke with chief executives of giant chip companies such as Intel and Taiwan Semiconductor Manufacturing Company. p>
Arizona, which is competing for grants with Texas, New York and Ohio, may have a head start on the action. The state has been home to semiconductor manufacturers since the 1940s and has 115 chip-related companies, while there is one major manufacturer in Ohio.
Arizona has also led the nation in chip investment since 2020, with announcements of two new chip factories by TSMC and two additional factories by Intel that will cost a total of $60 billion. Heads of state had helped persuade companies to open the facilities by offering major tax breaks and subsidies for water and other infrastructure. They also promised to expand technical and engineering education in the state.
State officials and chip companies also acted as a lobbying bloc in Washington. They helped shape the CHIPS Act to include federal tax credits, grants, and research and labor grants. TSMC has expanded its lobbying staff to 19 from two in two years, and Intel spent more than $7 million on lobbying efforts last year, the most it has spent in two decades. Arizona State University spent $502,000 on lobbying last year, also the most in two decades.
“It has been an intentional and on-deck effort," said Sandra Watson, president of the Arizona Commerce Authority, a nonprofit economic development organization that has helped lead the state's efforts to attract chip companies and lobbying for the CHIPS Act.
What's Your Reaction?
![Three of ID's top PR executives quit ad firm Powerhouse [EXCLUSIVE]](https://variety.com/wp-content/uploads/2023/02/ID-PR-Logo.jpg?#){kind=logo}
