Arizona and Texas Vying For Top Semiconductor Hubs in the U.S.
The United States is making an effort to become a world leader in semiconductor manufacturing over the next ten years or so, after decades of comparatively slow production growth. Two of the biggest growers in terms of production and potential are Arizona and Texas. Most recently, Intel invested $20 billion into two massive fabs in Arizona and Samsung announced plans for a $17 billion facility in Austin, Texas.
Arizona has been a hotspot for U.S. semiconductor manufacturing dating back to the early 1980s when Intel built the state’s first large-scale fab in Chandler. Available land for reasonable prices, business-friendly taxes, and Chandler is a short drive from the state’s largest city, Phoenix, are all reasons for other companies following Intel’s lead in making Arizona a semiconductor hotspot.
Texas, on the other hand, has more recently become a player in semiconductor manufacturing. NXP Semiconductor and Samsung have both been a mainstays in investments and job creation within Texas, building fabs in Austin in 1991 and 2011 respectively. Like Arizona, Texas also features affordable land for large fab construction and business friendly taxes.
Time will tell which state will become the U.S. “hub” for semiconductor chip production, but the U.S. government seems to be all-in on investing in the future of semiconductors.