The U.S. Commerce Department and Natcast, the National Semiconductor Technology Center operator, have selected Arizona as the site for a flagship semiconductor research and development facility. Located at Arizona State University’s Research Park in Tempe, the lab will focus on prototyping and advanced packaging, addressing a critical gap in the U.S. semiconductor ecosystem.
This facility is the third and largest of three CHIPS for America research centers. While final terms are still under negotiation, the lab is expected to be operational by late 2028, bringing hundreds of jobs and billions of dollars in investment to the state.
The Facility and Its Purpose
The new NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility will combine research and prototyping for semiconductor manufacturing and packaging. Packaging, a crucial stage in semiconductor production, involves connecting and protecting microchips to ensure optimal performance, efficiency and heat dissipation in increasingly compact designs.
ASU President Michael Crow emphasizes the lab’s transformative potential. “This is the largest of three CHIPS R&D flagship facilities being launched that, together, represent the greatest national laboratory investments since those that came out of the Manhattan Project,” Crow says. “Arizona will be the hub nationally — and ASU is at the center of the hub.”
The lab will leverage ASU’s MacroTechnology Works facility, which features a 49,000-square-foot clean room and specialized tools for research, development and prototyping. The facility will also benefit from ASU’s partnership with Applied Materials, supported by the Arizona Commerce Authority, and its advanced NanoFab and Advanced Electronics and Photonics labs.
Economic and Workforce Impact
The lab will contribute to Arizona’s semiconductor ecosystem by fostering innovation, attracting private-sector investments and creating high-paying jobs. ASU’s Ira A. Fulton Schools of Engineering, the nation’s largest engineering school, will support the facility with resources and expertise, ensuring a pipeline of skilled talent for the semiconductor industry. “This strategic collaboration is a significant step toward ensuring the United States remains a global leader in semiconductor research, development and manufacturing,” says Sally Morton, executive vice president of ASU’s Knowledge Enterprise.
The CHIPS and Science Act has already allocated billions to Arizona’s semiconductor industry, including $4 billion for Intel in Chandler and $6.6 billion for Taiwan Semiconductor Manufacturing Co. in Phoenix. The new lab is expected to build on this momentum, solidifying Arizona’s role as a global semiconductor hub.
National Significance
The NSTC facility aligns with a broader national strategy to rebuild America’s semiconductor capacity. Senator Mark Kelly, who championed the CHIPS Act, notes the importance of keeping advanced semiconductor research and manufacturing within the United States. “This groundbreaking effort will mean that researchers and startups won’t need to go to China or Europe to test their cutting-edge prototype microchips,” Kelly says. “The most advanced microchips in the world that power everything from AI to quantum computing will now be developed, tested and packaged in our state [Arizona].”
Arizona Governor Katie Hobbs highlights the facility’s role in boosting the state’s economy and supporting the national supply chain. “This flagship facility will serve as an anchor for Arizona’s thriving semiconductor ecosystem while supporting R&D and supply chain resiliency nationwide,” Hobbs says.
A Collaborative Approach
ASU’s role in this initiative reflects its leadership in interdisciplinary research and workforce development. Morton notes that ASU’s partnerships with industry and academia position the university to meet the demands of this ambitious project.
Deca Technologies, a global leader in advanced packaging, is among the private-sector partners already collaborating with ASU. Tim Olson, Deca’s CEO, emphasizes the facility’s potential to drive innovation and attract further investments. “This once-in-a-generation investment will boost the entire semiconductor industry with powerful capabilities to further develop and scale new technologies,” Olson says.
What’s Next
As negotiations conclude and plans progress, Arizona is poised to become a central hub for semiconductor research, development and manufacturing. The NSTC facility will play a pivotal role in strengthening the U.S. semiconductor supply chain, advancing critical technologies, and creating economic opportunities for the state.
“This work is essential to U.S. economic stability and defense security,” Crow says. “It begins with building new, expanded national hubs for advanced training, technology development and manufacturing — all concentrated in Arizona.”
With federal support, bipartisan collaboration and ASU’s expertise, the new facility represents a critical step forward for the state and the nation in the global semiconductor race.
The CHIPS and Science Act has already allocated billions to Arizona’s semiconductor industry, including $4 billion for Intel in Chandler and $6.6 billion for Taiwan Semiconductor Manufacturing Co. in Phoenix. The new lab is expected to build on this momentum, solidifying Arizona’s role as a global semiconductor hub.
