Arizona Republic - US Microchip Production is About to Surge, and Arizona Will Be at the Forefront

Op-Ed

Last month, I stood on a bare patch of desert in north Phoenix, just off Interstate 17, and looked at the foundation of a new manufacturing facility critical to reshaping our state and our country's economy.

The facility is a "fab," or fabrication plant, built by the Taiwan Semiconductor Manufacturing Company to produce the most advanced microchips ever made in the United States. And it's not the only one. Across the Valley in Chandler, Intel has broken ground on two new fabs of their own.

Microchips power our cellphones, cars, computers and much more, yet our country relies on an overseas supply chain. That's about to change.

What the CHIPS Act does for Arizona

For the past year and a half, I have worked with Republicans and Democrats on a $52 billion plan to fund the CHIPS Act, which will boost American microchip manufacturing to bring our supply chains back to America.

And it's about to be signed into law.

For Arizona, this means lower costs on products, a reduced reliance on foreign countries, and a rapidly growing industry that will create thousands of good-paying jobs in our state.

Microchips were invented in America, and we used to manufacture about 40% of them. Today, that number is closer to 12%.

Our primary sources of microchips are oceans away, subject to disruptions or even intervention by adversaries like China.

We have recently seen a global microchip shortage halt production lines and drive up wait times and prices for everything from medical devices to cars. Without a manufacturing base in America, we are left vulnerable to these kinds of disruptions. 

We must develop the next generation of microchips

So, here's the plan: We get the world's best chip makers to base their operations in America, providing incentives and tax credits to build or expand facilities here. But that alone isn't enough because we also need to invest in research, development and testing.

That's why I worked with President Michael Crow and his team at Arizona State University to establish a National Network for Microelectronics Research and Development, so that entrepreneurs can partner with our country's leading universities to develop the next generation of microchips.

With these investments, we're also making sure that companies can't use these incentives to buy back stocks and enrich shareholders, and they also can't turn around and build their most advanced manufacturing facilities in China or other hostile countries.

That will position the United States to regain its leadership in manufacturing the microchips we rely on, and in designing the most advanced microchips to bring us into the future and protect our national security.

And Arizona will lead the way.

It's about jobs, stronger supply chains, lower costs

Arizona is an emerging microchip hub that is poised to rapidly expand because of our CHIPS Act funding.

This is going to create jobs not just with companies like Intel and TSMC, but also with the network of companies that support them. And many of these jobs don't require a four-year degree.

At Estrella Mountain Community College's West-MEC campus, I saw their Semiconductor Technician Quick Start program, which through a partnership with TSMC and Intel is getting Arizonans the skills they need to join this industry in just a 10-day course. This will prepare Arizonans for great-paying careers without going into debt to get a degree.  

Getting things done in Washington isn't easy. But in the Navy and at NASA I learned how to bring people together behind a common goal. I worked for more than a year with Republicans and Democrats in Washington, as well as elected officials and business leaders in Arizona, to get this passed.

The result is a law that will create thousands of jobs in our state and reduce our reliance on foreign countries for the components that are critical to our economy and national security. That means a strengthened supply chain and lower costs for Arizonans.

In a decade, the foundation I saw in north Phoenix will be a hub for the most advanced microchips in the world. And that's just the beginning.

Microchips may fit on your fingertip, but they are going to be huge for the future of Arizona.  

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