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01 Overview
02 Talent Pipeline
03 Industry Ecosystem
04 Labor Analysis
05 Operating Cost Analysis
06 Quality of Life

Develop Your Business in

Greater Phoenix


A top national hub for the semiconductor industry.

Greater Phoenix is a top market in the nation to locate, relocate or expand your semiconductor company operations. In fact, the region’s semiconductor sector is one of the largest in the nation.

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Contents

1
Overview
2
Talent
Pipeline
3
Industry
Ecosystem
4
Labor
Analysis
5
Operating
Cost Analysis
6
Statutory
Incentives
1

Overview

Greater Phoenix is one of the nation’s most storied semiconductor hubs.

Value Proposition

Large Existing Cluster

Greater Phoenix is home to some of the industry’s largest and most influential players in the semiconductor industry. Headquarters in the region include: ON Semiconductor, Microchip Technology, Amkor Technology, ASM America and others. Almost all firms have significant research and development operations in the region.

Smart Tax Policy

Greater Phoenix offers lower personal income tax in every income bracket, including approximately $2,000 less tax burden per capita in Arizona vs. California. Relocating your semiconductor business to Arizona offers substantially lower corporate income tax rates.

Robust Semiconductor Workforce

Greater Phoenix offers more than 90,000 jobs in occupations relevant to semiconductors. Labor costs are tens of thousands dollars less per employee per year.

Competitive Operating Costs

Compared to San Jose, Greater Phoenix’s operating costs are 36% lower and real estate costs here are approximately half as expensive. Arizona is also a right-to-work state.

Exceptional Talent Pipeline

Arizona universities produce more than 4,000 graduates in semiconductor-related degrees each year. Over 25,000 students are enrolled in engineering schools across Arizona. There are nearly 30,000 total graduates from Arizona’s largest universities each year.

2

Talent Pipeline

Arizona’s institutions of higher education are training the semiconductor workforce of the future through innovative partnerships and high-quality engineering programs.

Arizona Universities and Technical Schools – Setting Up the Semiconductor Workforce for Success

Arizona has three four-year public universities: Arizona State University in Tempe, Glendale, Phoenix, and Mesa; Northern Arizona University in Flagstaff; and the University of Arizona in Tucson. Arizona State University, Northern Arizona University, and the University of Arizona each have a full range of electrical engineering, computer engineering, engineering technology/technician, computer science, and informatics programs. Between these three universities, various junior colleges, and a number of coding schools and boot camps available in the region, Arizona’s institutions of higher education are preparing the workforce of tomorrow.

Nationally Recognized Programs in the Semiconductor Industry

3

Industry Ecosystem

Industry-leading firms from across the semiconductor-related cluster have critical operations in Greater Phoenix.

Operations in Greater Phoenix that Fall Under the Semiconductor Cluster

Whatever the operation type, Greater Phoenix has demonstrated that it has the ecosystem to support microelectronics firms, both big and small. Below is only a small list of companies that have operations in Greater Phoenix specific to semiconductor operations. Whether big or small, these companies have helped build the industry in the region, supporting growth specific to the semiconductor industry year after year.

4

Labor Analysis

Greater Phoenix has a robust supply of human capital with a number of jobs in relevant occupations to help sustain the semiconductor workforce.

 

The table below shows the total number of jobs in relevant occupations in Greater Phoenix and
San Jose.

Occupation Phoenix San Jose
General and Operations Manager 38,500 16,887
Computer and Information 5,919 13,628
Industrial Production Managers 2,386 2,038
Architectural and Engineering Managers 2,548 5,711
Software Developers, Applications 12,453 49,411
Software Developers, Systems Software 7,565 27,641
Computer Hardware Engineers 1,166 8,317
Electrical Engineers 3,157 5,297
Industrial Engineers 2,907 4,952
Materials Engineers 900 557
Electrical and Electronics Drafters 553 811
Electrical and Electronics Engineering Technicians 2,382 5,466
Industrials Engineering Technicians 2,089 506
Total 82,525 141,222
5

Operating Costs

Companies in Greater Phoenix benefit from low business costs and an advantageous operating environment.

 

Not only does Greater Phoenix have a thriving semiconductor ecosystem, it also offers operating costs that are 36% lower than San Jose. Simply put, semiconductor businesses get more value in Greater Phoenix.

Assumptions

• $5,000,000 personal property investment

• 40,000 square foot Suburban Class A, lease

• Utilities (per month): Included in lease

• 100 jobs (Bureau of Labor Statistics equivalent occupations)

Occupations Employment
Software Developers, Systems Software 25
Software Developers, Applications 25
Computer Hardware Engineers 10
Electronics Engineers, Except Computer 10
Electrical Enginieers 10
Office Clerks, General 6
Industrial Engineers 5
Computer Systems Analysts 5
First Line Supervisors of Office & Administrative Workers 1
Network & Computer Systems Administrations 1
Computer &Information Systems Managers 1
General & Operations Managers 1
6

Quality of Life

Greater Phoenix offers unparalleled quality of life for major metropolitan region.

 

With low cost, quality infrastructure and housing, and abundant leisure activities, Greater Phoenix is a place where the talent that makes companies great can afford to thrive. Greater Phoenix also provides access to spectacular outdoor recreation – everything from hiking, biking, or walking the hundreds of parks and miles of trails, to water sports, can be found within a three-hour drive of the region. The tables below highlight how significant the cost difference is between Greater Phoenix and San Jose.

 

Semiconductor companies in Phoenix

Notable Semiconductor Companies in Greater Phoenix

  • Intel
  • Microchip Technology
  • NXP
  • ON Semiconductor
  • Amkor Technology
  • SUMCO
  • ASM America
  • Integrated Device Technology (IDT)
  • Infineon
  • ASML
  • Marvell Semiconductor
  • Qualcomm

 

Want to see a full list of companies in Greater Phoenix? Download the complete report.