The latest company to invest in Arizona’s growing semiconductor industry is Hyperion Technologies, a leader in manufacturing high-density interconnect IC substrates (HDI-IC substrates). Although Hyperion may not yet be a household name, its recent announcement to build a 600,000-square-foot facility in Peoria aims to fill a crucial gap in the U.S. semiconductor supply chain and significantly boost the local economy.
HDI-IC substrates provide the electrical connectivity necessary for semiconductors, which are the brains behind almost all modern electronics and are essential for high-performance applications in defense, aviation, electric vehicles, consumer electronics and medical devices.
Why This Matters to Arizona
Arizona is a hotspot for semiconductor innovation, and companies like Hyperion are seizing the opportunity to be part of the state’s thriving tech community. Hyperion’s Peoria facility is expected to create 1,500 direct jobs and 4,500 construction jobs over the course of the project. However, its significance extends beyond employment opportunities.
Currently, the U.S. produces none of the world’s HDI-IC substrates, relying heavily on overseas manufacturers. With the global semiconductor supply chain becoming more vulnerable due to geopolitical tensions and disruptions like the pandemic, companies are looking to reshore key production elements. Hyperion’s Peoria facility is a step toward tackling this U.S. challenge and strengthening Arizona’s ecosystem.
For Peoria, this project is a huge win. Hyperion’s facility, joining other major investments in the area, including Amkor Technology’s planned $2 billion semiconductor packaging facility, cements the city’s desirability for future semiconductor growth and positions it as a hub for high-tech manufacturing in the years to come — resulting in a vibrant cluster of innovation similar to what Chandler is experiencing.
What Hyperion’s Facility Will Do
Construction of the facility will be in phases, with the groundbreaking expected in 2025 and set to be finished by the end of 2026. Once operational, the facility will manufacture millions of units annually for industries like defense, aerospace and energy sectors alongside medical devices. With the ability to support at least 10 of the 16 critical infrastructure sectors recognized by the U.S. Department of Homeland Security, Hyperion is positioned to play an essential role in maintaining the United States’ technological advantage in today’s global landscape.
The facility will feature fully automated, state-of-the-art production lines, making it one of the world’s most advanced HDI-IC substrate manufacturing plants. The incorporation of research and development into each phase of the project will ensure the company remains at the forefront of innovation. This will enable Hyperion to continuously enhance its products to cater to the needs of industries that rely on ever-smaller, more powerful chips.
Why HDI-IC Substrates Matter
HDI-IC substrates are critical in semiconductor packaging because they enable the electrical connectivity necessary for chips to communicate with other parts of an electronic device. As chips become more sophisticated and powerful, the need for advanced packaging techniques like HDI substrates increases. These substrates enable denser, higher-performance packages, which are necessary for advanced applications like artificial intelligence, 5G networks, electric vehicles and more.
In addition to improving performance, they also regulate power distribution and heat dissipation in semiconductor devices to enhance efficiency. As demand for faster, more powerful chips grows, new facilities like Hyperion are essential for advancing semiconductor manufacturing technology.
Implications for the Arizona Economy
Over the next decade, Hyperion’s project is predicted to generate $6.6 billion in economic output for the Greater Phoenix area. This boost will be due to the employment opportunities created by the facility and the additional jobs generated from the construction and support industries.
With big players like Intel, Taiwan Semiconductor Manufacturing Co., and Amkor Technology already making significant investments in Arizona, Hyperion will add another vital component to the state’s expanding tech environment.
Hyperion’s decision to invest in Peoria showcases the state’s strong business environment, skilled workforce and strategic location. The state’s leading role in bringing back semiconductor manufacturing is increasingly evident with every new project. Hyperion is an example of how Arizona is solidifying its position as a significant contender in the global semiconductor race.
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