Enhancing Collaboration through Cultural Training

Phoenix has long been a hub for semiconductor manufacturing, a legacy that dates back to 1949, but throughout the years the costs of maintaining cutting-edge facilities soared and some companies opted for a “fab-lite” approach. This strategy involved continuing some local production while outsourcing more advanced manufacturing to Asian fabs like Taiwan Semiconductor Manufacturing Company.

Despite such shifts, Arizona remained a significant player in the semiconductor scene, home to both industry giants like Intel and smaller specialists like Microchip Technology and ON Semiconductor. Yet, much of the sector’s most advanced production and excitement had shifted to Asia, particularly Taiwan.

In a testament to its resilience and adaptability, the semiconductor industry in Phoenix has experienced a significant resurgence in recent years. Since January 2020, 35 semiconductor-related companies have announced plans to expand or relocate to Arizona, drawn by the region’s vast and growing ecosystem of suppliers and skilled workforce. This influx includes not only major chip makers and equipment manufacturers but also numerous smaller companies integral to the supply chain — ranging from chemical producers to packaging and transportation firms, including many of TSMC’s suppliers from Taiwan. This growth has led to a boom in job opportunities and economic development in the region, as well as a boost in cultural diversity.

As the industry expands, the need for integrating a culturally diverse workforce has emerged as a critical challenge. Kiterocket, a Phoenix-based PR and marketing agency, stepped in to address the cultural nuances that are now shaping Arizona’s semiconductor industry by developing cultural training workshops. Led by a Taiwanese native with more than 15 years of experience in both the U.S. and Taiwanese markets, these workshops are designed to help participants understand and navigate the cultural differences affecting joint ventures and collaborations.

The need for such training became particularly apparent following some early challenges between some of the relocating Taiwanese companies and the local workforce in Phoenix, which highlighted differences in work expectations. For instance, longer work hours are common in Taiwanese operations, which clashed with the standard American 40-hour workweek. This led to the local construction firms involved in building new facilities often facing timeline clashes due to these differing work norms.

Moreover, communication styles between Asian and American cultures differ significantly. For instance, Asian workplace culture often emphasizes hierarchy, authority and seniority, leading to decision-making processes that can be quite different from the more inclusive and collaborative approaches typically seen in U.S. companies. This difference can sometimes result in misunderstandings, particularly when direct American communication styles encounter the more polite, indirect methods preferred in Asia.

Feedback from Kiterocket’s recent workshops has been positive. For instance, after a workshop with the Southwest team from Swagelok, a global leader in industrial fluid system manufacturing, participants noted a significant improvement in their understanding of Taiwanese business practices, stating, “Our team left the training with a greater appreciation of Taiwanese culture and ways of doing business. This event helped us recognize roadblocks and obstacles that we have encountered. We now feel better prepared for our future collaborations. This training will help both Taiwanese and North American companies gain a better understanding of each other.”

As Phoenix’s semiconductor industry continues to evolve, ongoing investment and the fostering of a deeper cultural understanding are not just important, they are essential to ensuring successful collaborations in this high-stakes field. This blend of technological innovation and cultural integration is not just a strategy, it’s a necessity for Phoenix’s continued role as a dynamic and resilient semiconductor hub.