Why some semiconductor suppliers are holding off their plans in Pinal County

Article originally posted on Phoenix Business Journal on October 15, 2024

Of the few dozen semiconductor suppliers that have expanded in Arizona in recent years, eight of those are planning to set up shop south of Phoenix in Pinal County.

Arizona has landed at least 40 semiconductor expansions, including suppliers, since 2020 to support Taiwan Semiconductor Manufacturing Co.’s $65 billion semiconductor complex in Phoenix and Intel’s $20 billion expansion in Chandler.

Many suppliers such as Sunlit Chemical made plans to locate in facilities close to TSMC in the Deer Valley area.

“What happened when TSMC came into the Valley, there was a school of thought and actually a pretty concerted effort to try to keep all of the suppliers in Maricopa County,” said Kirk McCarville, a Pinal County specialist for Land Advisors Organization, at the Phoenix Business Journal’s Pinal County Growth Corridors event on Oct. 10.

But some quickly found more available and cheap land in Casa Grande for new rail-served facilities and faster permitting processes. Most suppliers only need to be located within a 60-mile radius of the main semiconductor campus.

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