The focus of the chip industry shifts, and a gold rush begins in Arizona! Semiconductors become strategic stage

The Western US Semiconductor Show moved to Arizona for the first time, attracting global manufacturers to flock in to look for business opportunities. TSMC has settled in Phoenix, driving an investment boom. Taiwanese factories are also taking the lead in making arrangements, but they are still waiting to see the follow-up development.

The Semiconductor Show (SEMICON WEST), which has a history of more than 30 years, used to be held in San Francisco, adjacent to Silicon Valley. This year, it moved to Phoenix, Arizona for the first time, and will be held alternately in the two places in the future. This is because in the past few years, the global semiconductor-related industry investment in Arizona has exceeded US$200 billion.

Intel, Iker relay factory expansion Desert turns into semiconductor settlement

"There are several important (semiconductor) ecosystems in the world, and Taiwan is certainly one of them. But I am increasingly convinced that Arizona in the United States will also be on the list." Giel Rutten, president and CEO of Amkor, the world's second largest packaging and testing factory, said in a speech at the Semiconductor Exhibition.

However, five years ago, in Arizona, where most of the land was covered by desert, the semiconductor industry was not yet prosperous. Only Intel, the leading American IDM, established a wafer foundry there. However, since TSMC set up a factory there and began mass production of 4nm process chips, it will continue to move towards more advanced 3nm and 2nm in the future, driving a wave of explosive investment.

First, not to be outdone, Intel expanded a new factory in the suburbs of Phoenix; American packaging and testing giant Aike also announced investment. In addition, integrated component manufacturers NXP (NXP) and Onsemi (Onsemi) have also made plans in the past, making this barren desert the hottest semiconductor cluster in the United States.

Japanese media "Nikkei Asia" cited SEMI's forecast that U.S. semiconductor equipment investment will grow from $21 billion in 2025 and 2026 to $33 billion in 2027 and $43 billion in 2028. By then, the United States will surpass China, South Korea and Taiwan to become the world's largest semiconductor equipment investment market.

Therefore, this year’s Semiconductor Show is like a gold rush, attracting manufacturers from all over the world to Arizona to look for business opportunities. According to SEMI data, there are more than 1,500 booths at this show, and the number of exhibitors has increased by 45% compared with last year.

During the exhibition, industry giants also released major news as if to save face. For example, Intel announced that its most advanced process 18A will be mass-produced at the Arizona wafer fab, continuing to promote the research and development of 14A in the United States; Aike also revealed that Arizona is breaking ground to build a new factory, and the total investment will jump from US$2 billion to US$7 billion.

"We originally only built a small factory in the United States, but now we have expanded it into a large-scale factory. The goal is to support American manufacturing and establish a complete one-stop supply chain in the United States." Luden said.

When the plans of major wafer foundry and packaging and testing manufacturers are finalized, opportunities will also arise for small and medium-sized Taiwanese factories specializing in equipment and consumables. At this semiconductor exhibition, about 20 Taiwanese manufacturers set up stalls on the spot, and many companies flew to Phoenix in advance to visit customers, hoping to seize the opportunity.