Arizona’s semiconductor expansion is beginning to reach beyond fabs and factory floors, creating ripple effects across workforce training, university research, business development and the state’s broader innovation economy. Partnerships between companies such as Taiwan Semiconductor Manufacturing Co. and Amkor Technology are one example of how major industry investments can create new opportunities well beyond chip production.
Arizona’s semiconductor growth is being driven by a mix of private investment, public funding and university partnerships. Arizona State University is one of the institutions expanding semiconductor workforce and research initiatives as the industry continues to grow in the state.
According to Grace O’Sullivan, vice president of TSMC Partnership Initiatives at ASU, the university was already continuing to expand research in advanced semiconductor packaging and developing specialized workforce programs before the partnership was announced. “And now we’re going to be serving as Amkor’s workforce and development partner, especially around the CHIPS Act,” she says.
Although ASU has previously partnered with TSMC and other semiconductor initiatives, the latest expansion could create additional opportunities for hands-on training programs, similar to current programs ASU has with Deca Technologies and SHIELD that are designed for technicians and workers looking to transition into semiconductor careers. The university will work closely with Amkor’s human resources team to develop curriculum aimed at training the future workforce.
“It widens the pipeline, not just for college degree-seeking talent, but also for technicians and workers looking to reskill and enter the industry,” O’Sullivan says. “That has a huge ripple effect on veterans and others looking to move into these high-wage jobs.”
That broader impact is one of the benefits of semiconductor investment. Arizona now supports key parts of the semiconductor ecosystem, including manufacturing, advanced packaging, workforce development and education. The partnership moves the state closer to having a “full stack from design to manufacturing to packaging,” O’Sullivan says. This ecosystem would now include supply chain implications.
According to Dean Freeman, a technology adviser with Bodewell Group and a former analyst with Gartner, keeping more of the semiconductor process in Arizona could strengthen the state’s position in the domestic supply chain. “It will simplify the overall packaging ecosystem for the final product because, instead of having to go to all those different countries, it can stay in Arizona, get its packaging done and keep the process here,” he says.
The growth is also expected to create jobs and spur activity in related sectors, including retail, restaurants and services. As training programs and industry resources expand, Arizona’s semiconductor workforce could grow beyond roles tied directly to TSMC or Amkor.
“They can take our training that’s provided by ASU in our facilities by our professors, then they can get an interview at TSMC, but it doesn’t mean they have to ultimately land at TSMC,” O’Sullivan says. “They could work at Intel; they could work at Amkor. So, it’s just more for the broader ecosystem. This is a great proof point, and there will be more programs like this now funded also by Amkor in the future.”
ASU’s strategy of locating research and innovation facilities near key industry partners is meant to support that goal. The university’s research park and innovation zones are designed to bring together companies, researchers and students, creating a pipeline from education to employment.
“We want the next generation of these massive companies to also launch from Phoenix,” O’Sullivan says, voicing her hope that those networks continue to expand, creating opportunities to connect innovators with venture capital, research facilities and larger industry partners.
According to Freeman, several large semiconductor packaging facilities are under development across the country, including projects in Texas, New Mexico and Indiana. Arizona’s ability to support both chip fabrication and advanced packaging within the same region could provide a significant competitive advantage as companies look for domestic supply chain solutions.
As Arizona continues to attract semiconductor investment, partnerships such as the one between
TSMC and Amkor’s show how one industry development can create widespread benefits. The impact can extend into workforce training, research, startups, suppliers and local businesses, helping solidify Arizona’s position in the semiconductor industry while strengthening the economy around it.
