Arizona Senator Mark Kelly’s bipartisan Building Chips in America Act — a critical piece of legislation aimed at cutting the bureaucratic red tape that slows down the construction of semiconductor factories in the U.S. while proclaiming to maintain the bedrock protections for clean air and clean water — was signed into law by President Biden on October 2nd. The enactment of Kelly’s bill will prevent unnecessary delays in the construction of microchip manufacturing facilities supported by the CHIPS and Science Act by streamlining environmental reviews for semiconductor projects, allowing new facilities to get up and running faster.
For Arizona, this bill comes at a critical time. With its rapidly expanding semiconductor industry, the state is positioning itself as a key player in America’s quest for technological self-sufficiency. Local businesses should take note of what this legislation means for the state’s economy and workforce.
“The result is smart, effective policy that will maximize our efforts to bring microchip manufacturing back to America by preventing unnecessary delays to getting these factories built. That’s important to our economy,” says Senator Kelly, “especially in Arizona, where it means tens of thousands of great paying jobs, and it’s important to our national security, reducing our reliance on foreign supply chains for this critical technology.”
The growth of the semiconductor industry has already brought billions in investment and thousands of new jobs to Arizona. Intel, a longtime Arizona presence, and Taiwan Semiconductor Manufacturing Co., a more recent entrant, are both undertaking multi-billion-dollar expansions — in Chandler and north Phoenix, respectively. These projects have received significant federal support through the CHIPS and Science Act, which was signed into law in 2022 and provides $53 billion to bolster domestic semiconductor manufacturing.
However, despite these investments, building semiconductor plants is no simple task. Environmental reviews, regulatory approvals and construction timelines often slow the process, delaying production and hindering the U.S. from meeting the growing demand for chips. This is where the Building Chips in America Act comes into play.
The law aims to address delays caused by lengthy environmental reviews. Currently, semiconductor manufacturers face months, if not years, of waiting for approval to break ground on new facilities. The new law will fast-track this process, reducing the time it takes to get new factories online.
“In order to remain globally competitive in semiconductor manufacturing, we must cut red tape to fuel the completion of critical facilities and projects,” says Arizona Sen. Kyrsten Sinema, a co-sponsor of the bill.
The semiconductor industry’s growth impacts not just the tech sector but also construction, logistics and various service providers. Since the passage of the CHIPS and Science Act, more than $60 billion in private investment for 38 semiconductor projects has been announced in Arizona.
These projects are expected to create thousands of direct jobs — many of them high-paying roles that don’t require a college degree — as well as tens of thousands of indirect jobs in industries like construction and transportation. Local suppliers, contractors and service providers stand to benefit from the increased activity, with ripple effects that could boost the state’s economy for years to come.
Arizona’s leadership in semiconductor manufacturing also has the potential to attract more businesses to the state. As more companies in the semiconductor supply chain look to establish U.S. operations, Arizona’s favorable business climate, skilled workforce and growing tech ecosystem make it a prime location for future investments.
While the economic benefits of semiconductor expansion are clear, lawmakers stress that the issue goes beyond dollars and cents. Semiconductors are vital to national security, and the U.S. currently lags in domestic production. Once accounting for 37% of global semiconductor manufacturing, the U.S. now produces just 12%. The reliance on foreign manufacturers for these vital components leaves the U.S. vulnerable to supply chain disruptions, whether caused by natural disasters, political instability or trade disputes.
With Arizona at the forefront of America’s semiconductor resurgence, the streamlined process is hoped to lead to faster timelines for new projects, bringing jobs and economic growth to the state sooner than expected.
