Semiconductors are the backbone of modern technology, playing a crucial role in everything from smartphones to advanced medical devices and even smart home appliances. Arizona’s semiconductor industry is driving advancements in more than just manufacturing technology, creating fertile ground for other technology-driven sectors and broader implications.
Due to the proximity to semiconductor corporations and educational institutions, as well as research centers, financial services, venture capital firms and Arizona military bases, external economies of scale have developed, making it easier for companies to find facilities, skilled labor, suppliers, sub-contractors and support services.
These synergies allow diverse industries to benefit from Arizona’s new burgeoning ecosystem. Semiconductor growth is fostering expansion in other markets, such as healthcare innovation. For example, semiconductor technologies are being used to revolutionize stagnant medical devices; Planatome, with its perfect edge and defect-free scalpel blades, is a perfect example. Another example is the recent federal grant awarded to the Greater Phoenix Economic Council and the Medical Device Manufacturing Multiplier Strategy Development Consortium.
In October, the U.S. Economic Development Administration designated 31 tech hubs through the federal CHIPS and Science Act. Tech Hubs is an economic development initiative designed to drive regional innovation and job creation by strengthening a region’s capacity to manufacture, commercialize and deploy technology that will advance American competitiveness. The MDM2 was one of 29 Strategic Development Grant recipients across the U.S. and the only group in Arizona to receive an award during this program’s first phase. The grant will establish Phoenix as a designated technology hub focused on healthcare innovation.
“This award will strengthen Arizona’s leadership in cutting-edge bioscience innovation, creating more opportunities for investment and good-paying jobs,” says Senator Mark Kelly. “The Regional Technology Hub program is designed to identify high-growth regions for critical industries, like Phoenix, so we outcompete China and other adversaries in critical technology. I’ll continue to work closely with Secretary Raimondo, Assistant Secretary Castillo and leaders in Phoenix to ensure this is a success for our state and the country.”
The Phoenix group, comprising about 25 public, private and academic partners, is focused on leveraging this opportunity by utilizing a tech hub strategy to strengthen the medical device manufacturing sector in the region. They will leverage technologies like artificial intelligence and machine learning. This strategy will attract further private investment in the industry, expanding the region’s infrastructure and capabilities and accelerating the journey of new inventions, such as the Flinn Foundation, Virginia G. Piper Charitable Trust and Vitalyst Health Foundation matching the SDG funding.
The symbiotic relationship between semiconductor growth and advancements in medical technology is strengthening. Moreover, the tech hub designation will enhance the region’s competitiveness in medical device manufacturing, addressing needs such as small-batch production and prototyping capabilities. This is a great example of the area’s unique potential in bridging semiconductor technology and medical innovation. This is crucial for a rapidly evolving field like healthcare, where the ability to quickly develop and test new technologies can significantly impact patient care and outcomes.
Phoenix’s bioscience and healthcare industries are already showing signs of rapid growth, with significant projects like Mayo Clinic’s Discovery Oasis biotech corridor and Arizona State University’s new medical school in Downtown Phoenix. These developments will bring high-wage jobs and substantial investments to the city, further catalyzing the region’s economic growth.
Furthermore, the semiconductor industry’s growth in Arizona aligns with national priorities. As noted by Kathleen Lee, senior vice president of regional initiatives for GPEC, the tech hubs are a program designed to enhance ecosystems in areas of critical national need, such as medical devices and biosciences.
The federal grant awarded to the GPEC consortium highlights this trend, showcasing how advancements in semiconductor technology can directly influence and accelerate growth in healthcare innovation. As Arizona continues to cement its position as a semiconductor hub, it is poised to become a critical player in the burgeoning field of medical technology, driving both economic growth and advancements in all complementary areas.
