Whether we start calling it Chip Canyon, the Silicon Zone, or Silicon Diyógí (say Dare-yo-ghee), it looks like Arizona is on track for becoming the epicenter of semiconductor resurgence, not just in the U.S. but in all of North America. And we have the collective visions of Governor Katie Hobbs, Phoenix Mayor Kate Gallego, Sandra Watson, Arizona Commerce Authority, and Chris Camacho, Greater Phoenix Economic Council to thank for it.
For the second year running, the annual SEMI Arizona Breakfast shined the spotlight on the state’s explosive growth in this sector. The room was packed with more than just industry members. Business leaders from adjacent industries wanted to learn more about the semiconductor industry, hoping to get in on the growth, and learn what impact it will have on their businesses and livelihoods.
“It’s not just us [saying this], all announcements recently have Arizona as the center,” said Watson. She pointed to recent collaborations across academia, industry, and government for making Arizona’s semiconductor industry stronger than ever. Gallego concurred, calling collaboration Arizona’s “secret sauce”.
“This is what a winning formula looks like,” said Comacho, describing the dedicated vision that began ten years ago, respect for the past and available utilities, resources, and academia, and the partners required to build a gap-free ecosystem. “This is just the beginning for Arizona.”
“We’re [Arizona] on the front page of the Financial Times in Europe because of what we’re doing here.” said Gallego.
Hobbs cited the leading-edge 4nm technology ramping at TSMC’s new fab as “The first in America,”. She noted that Apple, Nvidia and AMD are all doing business in Arizona, due to having TSMC nearby.
Another first for Arizona intended to fill a critical gap is the new Advanced Packaging Piloting Facility, the first national lab for Arizona under the CHIPS for America Initiative, to be located at ASU Research Park in Tempe, AZ.
Noting that the semiconductor industry is “changing the fabric of our economy,” Gallego ticked off examples of how, including new international flights driven by semiconductor ties, and a $165B investment in North Phoenix to establish Halo Vista – a city within a city that features smart city development. Additionally, Phoenix boasts the largest autonomous vehicle center in the world, with pick up at Sky Harbor Airport. Amazon launched drone delivery service in West Phoenix November 2024 and is slated to come to Metro Phoenix soon.
“We also have better Japanese and Taiwanese restaurants – our dumpling game is improving,” joked Gallego. She also pointed out that her first ever international trip as mayor of Phoenix was to Taiwan. “It’s usually Mexico,” she said.
“Who wouldn’t want to come to Arizona?” was Matt Reading’s response, when I asked why he had come over from San Jose to promote Comet Yxlon’s nearby presence.
That pretty much summed up the general mood. Stars don’t rise here, but phoenix’s do. And in these times of uncertainty, this room full of people were looking for hope and positivity.
The Elephants in the Room
Despite the optimistic energy of this event, based on the networking conversations I had, it was hard to ignore the undercurrent of uncertainty that some attendees were feeling. The questions I wanted answers to are the ones that keep me up at night. How are the new tariffs impacting industry growth in Pheonix? Are CHIPS Acts funds earmarked for local businesses like ASU, Amkor, and Intel in jeopardy? And most importantly, how is Arizona going to sustainably support this growth?
Joe Stockunas was quick to address the tariff question. He said SEMI has advocacy team in Washington tasked with presenting data to a 232 Investigation explaining what’s important to the semiconductor industry to operate in a global supply chain.
Call me crazy – I’m just an industry journalist, not the leader of the free world. But if I was, I ‘d make sure I understood fully the complexities of a global industry that underpins everything we do, and make sure I understood fully the impact tariffs would have BEFORE implementing them, not after. Just saying…
While Dierdre Hanford, CEO and Trustee of the National Center for the Advancement of Semiconductor Technology (NATCAST) presented some very exciting activities her organization is spearheading, she couldn’t answer my question directly about whether CHIPS Acts Funds allocated under the Biden Administration were in jeopardy.
She explained that she couldn’t speak for the activities of the CHIPS Program Office, which was moved under the Trump Administration’s Innovation Accelerator, as they are out of her domain. However, she assured me that CHIPS R&D, which remained under the Commerce Department, are still “full speed ahead.”
I was also happy to hear that Hanford is as concerned as I am about data center energy needs to power all the Generative AI queries. She cited solving this as a key area of focus for the Advanced Packaging R&D Center that will be located in Arizona.
I asked a few people “in the know” how the Trump Administration’s freeze on university research funding might impact the monies earmarked for ASU’s microelectronics projects such as the SWAP Hub and SHIELD. The general sentiment is that these funds are probably ok, because they are a matter of national security. But nobody can say for sure. Fingers crossed on that one.
The Epicenter of Semiconductor Resurgence in 20 Years
During the executive panel, speakers painted their vision of Arizona 20 years in the future. ASU’s Zachary Holman wants it to be known for its brain power not just manpower. Amkor Technology’s Dave McCann, predicts a thriving, high volume semiconductor supply chain. ASM’s Vamsi Parachuri dreams of drone delivery and commuting by drone taxi. Deca’s Tim Olson envisions a start-up, IP centric ecosystem. Lastly, Chis Comacho envisions an infrastructure that can support all this, with plentiful energy and water supplies.
While I appreciate all these visions, the realist in me puts money on Chris’s vision. Because in 20 or 30 years, at the rate we’re going, if we don’t prioritize AI energy reduction, renewable energy generation, and water conservation, we’re going to be sitting on a real silicon desert where drones don’t fly, electric and autonomous cars don’t start, and data centers overheat. And I don’t think anyone wants that.
SEMICON West is Coming to Phoenix
Speaking of coming to Arizona – this event was part of the promotional campaign for SEMI’s transition of SEMICON West, its flagship event, to move from San Francisco to Phoenix alternating years, beginning in 2025.
“If you don’t have the leading semiconductor event in your city, are you really the epicenter of the industry?” quipped Comacho.
According to Joe Stockunas, President of SEMI Americas, the realization that semiconductor critical mass was coming to Arizona solidified the decision to move SEMICON West, SEMI’s flagship tradeshow. In jest (or was it?) he set a challenge to exceed SEMICON China’s attendance of 180,710 attendees.
“I look forward to seeing all of your families,” he said. Hobbs and Gallego both accepted the challenge.
“It will be the best SEMICON West BECAUSE it’s being hosted in Arizona,” said Hobbs.
Chip Canyon, Silicon Zone, or Silicon Diyógí?
If you made it this far into this post, you’re probably wondering what these names are all about. Not all, but many of us attending have lamented that the name “Silicon Desert” isn’t inspiring or reflective of the semiconductor boomtown that Arizona is becoming. So SEMI decided to do something about it and held the Chip In for Arizona Student Semiconductor Naming Competition.
Competitors were asked to provide a unique brand name, vision statement and positioning statement to support the brand name. They had to tell the brand story, and provide supporting documentation, such as a logo design. Lastly, they had to present a rollout overview. The three finalists presented at the breakfast.
The three finalist brand names were Chip Canyon, Silicon Zone, and Silicon Diyógí. Each team presented their ideas, and the room voted in real time. The winner, based on the presentations, was Silicon Diyógí.
For those who don’t know, “Diyógí” is a Navajo word for a woven rug or blanket – a tapestry created by hand on a loom, often holding cultural, spiritual, and familial meaning. In Arizona’s rebranding, it is a symbol of our semiconductor future – a story woven from technology, heritage, sustainability and community.
While I appreciate the sentiment, effort and thought that went into the Silicon Diyógí brand development, I’m of the mind that if you have to explain a brand too deeply, it’s not going to take hold. For that reason, my vote went to Chip Canyon. What are your thoughts?
If you missed the forum and want all the details, you can still register and watch the recorded event here
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