Greater Phoenix has been a leader in semiconductor development since 1949

Semiconductors

Join Global Leaders in Greater Phoenix

A Top U.S. Semiconductor Hub

Greater Phoenix has been a leader in semiconductor development since 1949 when Motorola first opened a facility in the region. This legacy company set the stage for Greater Phoenix to house companies such as onsemi, NXP Semiconductors and Microchip Technology and secure investments of billions of dollars from giants such as Intel and TSMC. The region’s engineering workforce, education partnerships, business-friendly operating environment and deep manufacturing history have positioned it to emerge as a global semiconductor manufacturing hub.

Semiconductor Industry Report

Get our 25-page, in-depth report on the semiconductor ecosystem in Greater Phoenix.

Greater Phoenix offers a robust workforce relevant to semiconductors.

Robust Workforce

Greater Phoenix is the third-largest U.S. metro area for semiconductors manufacturing employment and offers a workforce of more than 90,000 in occupations relevant to semiconductors.

Greater Phoenix's large existing cluster helps support new to market businesses in the semiconductor industry

Large Existing Cluster

Greater Phoenix is home to some of the largest and most influential players in the semiconductor industry. Headquarters in the region include onsemi, Microchip Technology, Amkor Technology, and ASM America.

Greater Phoenix offers reliable infrastructure for future growth in the semiconductor industry

Reliable Infrastructure

Greater Phoenix offers fast fiber connectivity and consistent and reliable power coverage. The region’s robust network of data centers is complemented by access to a leading domestic and international airport and a low risk of natural disasters.

Competitive operating costs in Greater Phoenix help support new and growing businesses in the semiconductor industry

Competitive Operating Costs

With low employee benefits costs, low property taxes, and business-friendly operating environments, Greater Phoenix semiconductor companies pay less while taking advantage of the area’s southwest location.

Greater Phoenix's talent pipeline is supported by university alignment in the semiconductor industry

Exceptional Talent Pipeline

Arizona universities produce more than 5,500 graduates in semiconductor-related degrees each year and 38,000 total graduates. More than 31,000 students are enrolled in engineering programs across Arizona universities.

Greater Phoenix residents enjoy a higher quality of life

Quality of Life

Enjoy a lifestyle that celebrates living outside the box. Discover nearby hiking trails and bike paths, sporting events, award-winning culinary options, and a vibrant arts and culture scene.

Robust Workforce

Some of the nations top Semiconductor companies reside in Phoenix
Semiconductor Expertise

With an increasingly strong semiconductor presence in Greater Phoenix, the region boasts a strong workforce with an exceptional talent pool. Greater Phoenix offers more than 115,000 jobs in occupations relevant to semiconductors. With a supportive tax environment and low operating costs compared to competitor markets, both new-to-market and existing semiconductor operations can find success in Greater Phoenix.

Semiconductor-Related Occupations by Metro

Greater Phoenix offers an abundance of potential candidates with extensive knowledge in all areas of the semiconductor industry. The table below shows the total number of jobs in relevant occupations in the selected metro regions. See how Greater Phoenix stacks up to competitor regions.

Occupation

Phoenix

Dallas/ Fort Worth

Portland

San Jose

General and Operations Managers

38,140

68,647

21,160

19,510

Software Developers and Software Quality Assurance Analysts and Testers

25,833

49,851

15,454

74,139

Computer and Information Systems Managers

8,367

12,236

5,063

15,943

Inspectors, Testers, Sorters, Samplers and Weighers

6,200

14,791

4,378

4,323

First-Line Supervisors of Production and Operating Workers

5,408

13,130

4,424

2,910

Industrial Engineers

4,747

8,194

4,074

4,858

Electrical, Electronic, and Electromechanical Assemblers, Except Coil Winders, Tapers and Finishers

4,220

9,444

4,300

8,635

Mechanical Engineers

3,533

6,493

3,086

4,889

Semiconductor Processing Technicians

3,358

1,937

4,274

3,674

Electrical Engineers

3,358

3,242

2,658

5,225

Architectural and Engineering Managers

3,297

4,511

3,566

7,235

Electrical and Electronic Engineering Technologists and Technicians

2,507

3,123

2,535

4,705

Industrial Production Managers

2,177

3,750

1,690

1,916

Computer Hardware Engineers

1,551

2,094

1,277

6,673

Electrical and Electronics Drafters

1,359

693

314

604

Industrial Engineering Technologists and Technicians

1,133

2,060

1,254

523

Materials Engineers

308

487

326

440

Total

115,497

204,683

79,834

166,202

Source: Lightcast 2021 Q4 Dataset

22203

Greater Phoenix is home to 22,203 semiconductor and other electronic component manufacturing jobs

Source: Lightcast 2021 Q1

50%

Domestic companies accounted for about half of the semiconductor manufacturing market in 2019

Source: 2020 Congressional Research Service Report

3rd

Greater Phoenix is the third-largest metro area for semiconductors manufacturing employment

Source: Lightcast 2021 Q1

Large Existing Cluster

Greater Phoenix Semiconductor Ecosystem

Whatever the operation type, Greater Phoenix has demonstrated that it has the ecosystem to support microelectronics firms big and small. Companies ranging from startups to well-established semiconductor operations have helped build the industry in the region, supporting growth specific to the semiconductor industry year after year. 

Benchmark Logo

Intel® Logo

Microchip Technology Logo

NXP Semiconductors Logo

Onsemi Logo

Taiwan Semiconductor Manufacturing Company Logo

In addition to major semiconductor manufacturers, Greater Phoenix has a network of industry suppliers covering materials, chemicals and machinery necessary to keep operations going. Below are some of the suppliers operating in Greater Phoenix. 

Air Products and Chemicals INC Logo

ASM International Logo

EMD Electronics Logo

Honeywell International Inc. Logo

JX Nippon Mining & Metals logo

Marketech International Corp Logo

Major Semiconductor Companies in Greater Phoenix

Explore the interactive map below to see more big players in the Greater Phoenix market.

Source: MAG Employer Database 2020; GPEC Analysis

Did you know?

Intel and TSMC committed a combined $32B in investments to Greater Phoenix in 2021.

Reliable Infrastructure

Greater Phoenix offers a reliable power grid that supports the top semiconductor companies
Powering Semiconductor Facilities

Greater Phoenix offers the second-most reliable power grid in the nation, giving consistent power support to the semiconductor industry throughout the region. With 73% fewer natural disasters than the adjacent state of California, semiconductor operations can rest easy knowing operations and productivity are rarely disrupted by outside factors. Over the last 10-year period, Arizona recorded only 33 total hours of disturbances. Semiconductor operations can reduce risk and increase operating efficiency by moving to Greater Phoenix.

Easily accessible airline connectivity makes Greater Phoenix a perfect location for top Semiconductor companies

Airline Connectivity & Access

Ideally situated in the southwest, Greater Phoenix not only meets airport logistic demands with cross-country flights and quick access to major metros in California and Texas, but serves as a direct carrier to and from companies in Mexico. A joint U.S.-Mexico customs facility under development at Phoenix-Mesa Gateway Airport will be the first of its kind in the country, easing the burden on companies that export goods.

Regional railways offer additional transportation methods for semiconductor operations in Greater Phoenix
Regional Rail Access

Greater Phoenix is served by two major railroads, Union Pacific and BNSF. With major rail lines throughout the entire Southwest reaching Greater Phoenix, semiconductor operations can rely on these railroad systems for both the import and export of goods and materials.

Industrial gas manufacturers help support semiconductor operations in Greater Phoenix
Industrial Gas Manufacturers

Greater Phoenix has a network of industrial gas manufacturers in the region available to meet the needs of manufacturing operations. Airgas, Matheson and Air Products & Chemical are among companies that operate in the region.

Download the full industry analysis for more on Greater Phoenix infrastructure.

Semiconductor Report

Competitive Operating Costs

Low operating costs make Greater Phoenix and ideal location for semiconductor companies

Companies in Greater Phoenix enjoy the benefits of low business costs, minimal regulation and an advantageous operating environment in a right-to-work state. From aggressive tax credits and incentive programs designed to increase access to capital, the Greater Phoenix region offers businesses a robust, pro-business climate.

Annual Business Operating Cost Comparison

The Annual Business Operating Cost Pro-forma below estimates the cost of running a typical semiconductor business in competitor markets across a handful of major expense categories. Component and custom analyses to match your company’s operations can be provided upon request. Contact us to request a custom analysis for your business.

Metro

Employee Payroll

Fringe And Mandated Benefits

Real Estate Payments

Property Tax

Total Operating Cost

Index

Phoenix

$9,762,834

$2,205,281

$1,265,600

$129,060*

$13,362,775

100.0%

Dallas-Fort Worth

$10,708,027

$2,419,689

$1,288,800

$162,173

$14,578,689

109.1%

Portland

$10,130,578

$2,389,291

$1,258,400

$60,000

$13,838,269

103.6%

San Jose

$13,004,139

$3,002,328

$2,683,200

$72,600

$18,762,267

140.4%

Assumptions: $6,000,000 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)

*The projected property tax of $129,060 in Greater Phoenix is set to decrease with the passage of HB2822.

HB2822: Tax Reduction to Benefit Data Centers

HB2822 reduces businesses’ tax burden by setting the full cash value of business and agricultural property at a fixed 2.5% of the property’s acquisition cost, rather than a depreciation schedule. This lowers the assessed value of the property and greatly reduces tax payments. Over a 10-year period, the personal property tax on a $500 million property would be just $2.4 million, a fraction of the nearly $51-million tax on standard depreciation. Below is a table comparing deprecation value of the property before and after the passage of the bill. Get more information here.

Schedule Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Previous (Pre-2022)

22.5%

35.7%

45.0%

51.1%

53.4%

47.0%

36.0%

24.0%

12.0%

2.5%

Current (Since 2022)

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Calculate Your Real Estate Savings

Select your MSA, building type and square footage to see how much you would save on annual real estate costs in Greater Phoenix.

Austin
Dallas
Denver
Los Angeles
Portland
San Francisco
Seattle
Type
Office
Industrial
Sq. Feet
Total Annual Savings
$

Calculations were performed using annual lease rates per square foot, effective property tax rates, and average costs of water, wastewater, electric and natural gas; utilities are included in office lease rates.

Sources: GPEC Metrocomp Tool; Costar Market Reports 2022

Exceptional Talent Pipeline

University alignment helps support the demand for the semiconductor labor pool in Greater Phoenix

State Support of Engineering Leads to Qualified Graduates

Greater Phoenix’s semiconductor companies not only helped to shape the region’s economy but had a key role in advocating for improvement to Arizona’s educational system through investment, public support and partnerships with local universities and community colleges. In 2020, more than 5,500 students graduated with semiconductor-related degrees from ASU, UArizona and Northern Arizona University (NAU).

University Alignment

Arizona has three four-year public universities: ASU, with four campuses around Greater Phoenix; Northern Arizona University, based in Flagstaff; and the University of Arizona, based in Tucson. Each school has 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.

University

Type

City

Engineering Enrollment

Semiconductor Graduates

Total Graduates

Arizona State University

4-yr Public

Tempe

24,994

4,070

19,572

University of Arizona

4-yr Public

Tucson

4,095

991

11,052

Northern Arizona University

4-yr Public

Flagstaff

2,570

521

7,638

Total:

31,659

5,582

38,262

Source: Arizona State University, University of Arizona, Northern Arizona University, Lightcast 2021 Q3 Dataset (2020 Graduates and Enrollment figures are listed for only on-campus degrees to the best of GPEC’s knowledge and include all campuses for each university.)

More Higher Education Opportunities

Maricopa Community Colleges

Consisting of 10 campuses across the region, Maricopa Community Colleges serves over 100,000 students each year. The district partners with major industry players to produce programs relevant to semiconductors and graduates prepared for the workforce.

Grand Canyon University

Grand Canyon University is a private Christian university located in Phoenix committed to training the next generation of working professionals. Relevant professional programs include computer science, electrical engineering, mechanical engineering and software engineering.

General Assembly

With 20 schools worldwide, including one in Phoenix, the school offers a variety of coding and technology-focused programs part-time, full-time, online and in-person. Studies include data science and software engineering.

Quality of Life

Semiconductor laborers on Greater Phoenix enjoy a vibrant lifestyle and diverse culture
Living in Greater Phoenix

Experience a vibrant lifestyle and diverse culture at an affordable cost of living.

Enjoy the outdoors with more than 300 days of sunshine, average temperatures of 75 degrees, convenient access to over 400 hiking trails and globally recognized sporting events. Take part in a vibrant arts and culture scene that includes prominent classical arts to public art to craft markets and a diverse range of music and cultural events. And, eat well with fresh farmers markets in every city, and globally recognized chefs and culinary experiences at your doorstep. Click the icons below to learn more about Greater Phoenix living.

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most relaxed U.S. city — Phoenix, AZ

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on Yelp's 'Top 100 Restaurants in the U.S.' is Cocina Madrigal in Phoenix

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best work-from-home city in the U.S. — Scottsdale, AZ

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