Sunlit Chemical, a Taiwanese chemical company serving the semiconductor industry, has chosen Phoenix as the company’s first U.S. location. 

The multi-million-dollar investment is yet another sign of Arizona’s place in the race to meet the worldwide demand for semiconductors.

The says it has 40 semiconductor manufacturers and supplier network businesses in its pipeline, representing 10,000 jobs and $45 billion of new capital investment. 

The Arizona Commerce Authority has developed and released the, a plan designed to advance the production of semiconductors for not only the state of Arizona but for the entire U.S. This plan has received the backing from higher education institutions including Arizona State University, Northern Arizona University, and the University of Arizona, all of which are aligning their educational offering with the state’s workforce needs. 

“Arizona is proud to welcome Sunlit Chemical’s first manufacturing facility in the U.S.,” Gov. Doug Ducey said at the company’s groundbreaking earlier this year. 

“Sunlit’s decision is a testament to Phoenix’s advancement as a national and global leader in the semiconductor industry,” Phoenix Mayor Kate Gallego said. “Its new fabrication facility in north Phoenix adds to the quality jobs and research excellence significantly expanding in our region.”

The 900,000-square-foot facility will be an investment of $100 million on 17 acres. Construction will take place in two phases. The first phase will concern the production of high purity grade industrial chemicals which should be operational in 2023. The second phase will concern raw material purification and should be operational in 2025.

“Sunlit is excited to expand into Arizona,” Sunlit Group President Bryan Lin said. “This new milestone marks Sunlit’s commitment to our partners that we are ready to expand our reach beyond Asia and set sights on the global front.”

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In his State of the State address last week, Gov. Doug Ducey said that Arizona is no longer a “flyover state on the way to Texas.” Based on the recent slew of investment announcements from world-renowned companies, his assessment of the state’s ability to attract and retain growing businesses is on the mark. 

On January 11, EMD Electronics, a chemical supplier for semiconductor companies, unveiled its plans to build a new $28 million factory in Chandler. The company has been steadily growing its presence in Arizona since the company in Tempe in 2019.

is the North American electronics business of Merck KGaA, Darmstadt, Germany. The company’s portfolio includes a broad range of products and solutions for the semiconductor industry. 

The new tech center will allow EMD to manufacture equipment necessary to capture and grow its gas and chemical delivery systems in North America, Europe, and Asia.

“Arizona is excited to welcome EMD Electronics’ new factory,” “EMD Electronics’ Delivery Systems and Services expansion is a valuable addition to our state’s thriving semiconductor ecosystem, increasing manufacturing and transportation capabilities critical to the semiconductor production process. We look forward to continuing to grow Arizona’s unrivaled semiconductor supply chain.” 

This investment comes just months after Intel, one of the largest semiconductor manufacturers in the U.S., announced the plan to expand into Chandler with Fab-42. 

Sandra Watson, president and CEO of the Arizona Commerce Authority, spoke on the competitive edge this investment gives , “EMD Electronics’ investment in Chandler advances its position as a global semiconductor materials leader. The company’s enhanced presence will bolster Chandler’s position as a technology hub, creating quality jobs and supporting existing semiconductor leaders in the state.”

The $28 million factory will be designed with specifications in mind to meet business needs through additional capacity for GASGUARD and CHEMGUARD systems. At full capacity the center is expected to house at . The factory lease is long-term and the company expects to be able to start operations at the end of 2022. 

“The opening of our new factory shows our commitment to further support our customers’ ambitious growth plans. We are proud to expand our production capacity and innovation footprint in Arizona and to contribute to the state’s development as a major semiconductor hub in the U.S.,” , head of the delivery systems and services business unit within the electronics business sector of Merck KGaA, Darmstadt, Germany. 

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The Arizona Commerce Authority announced the formation of the National Semiconductor Economic Roadmap on Tuesday. Tasked with furthering collaboration between private industry, the public sector, and higher education “to future-proof semiconductor manufacturing in the United States,” the Roadmap is a first-of-its-kind endeavor.

Citing the surging global demand for semiconductors and microchips, stakeholders involved in the project — including the ACA, Intel, and Taiwan Semiconductor Manufacturing Company (TSMC) — believe that there must be more attention paid to the semiconductor industry. 

“Today more than ever, we see the strategic importance of a robust U.S. semiconductor industry,” Intel CEO Pat Gelsinger said. “Fostering deeper partnerships with our research institutions, universities, defense institutions, state leaders, and more will be critical to our long-term economic and national security, and we are pleased to join this worthwhile effort.”

TSMC Arizona’s CEO and President Rick Cassidy said there are particular elements essential to a thriving semiconductor sector.

“A thriving semiconductor ecosystem requires solid infrastructure, a comprehensive supply chain, and a steady inflow of talented and dedicated people,” he said. 

Both Intel and TSMC recently made historic investments in the state and their semiconductor manufacturing operations.

Arizona’s semiconductor boom

Intel this month officially on a new chip-making operation in Chandler, a $20 billion investment that is the largest single-time investment in Arizona to-date. 

“We want to have Arizona and Intel be the unquestioned leaders for the world’s supply of leading-edge semiconductors,” Gelsinger said.

TSMC is building a $12 billion chip-making factory in north Phoenix. The company as many as six factories at the Arizona site over the next decade.

Several factors have contributed to Arizona’s growing semiconductor manufacturing operations, including its welcoming business environment characterized by favorable tax rates, a lighter regulatory burden than neighboring states like California, and world-class universities. 

Federal policies aimed at encouraging chip-making have also drawn companies to break new ground, though the surging demand for semiconductors already showed the market that more manufacturing capacity was desperately needed.

“Today’s groundbreaking ushers in a new landscape for Arizona semiconductor production, ” Gov. Doug Ducey at the Intel groundbreaking ceremony.

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