Arizona and ASU Selected For Flagship Prototyping and Advanced Packaging R&D Facility

TEMPE, AZ (January 6, 2025) - The Arizona Commerce Authority announced today that the U.S. Commerce Department and Natcast, the operator of the National Semiconductor Technology Center (NSTC), have selected Arizona as the site of the co-located NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility, the third of three CHIPS for America research and development (R&D) flagship facilities.

The facility will combine 300mm research and prototyping for front-end manufacturing and packaging capabilities, meeting a unique need for advanced packaging R&D within the U.S. semiconductor ecosystem. Key packaging capabilities are expected to include a baseline advanced packaging piloting line to enable the development and commercialization of new packaging processes. The facility will also support U.S. workforce development efforts by providing opportunities for collaborative, hands-on research utilizing industry-leading tools and equipment.

The facility, which will be located at the Arizona State University (ASU) Research Park at 8240 S. River Parkway in Tempe, represents a partnership and coinvestment among the Department of Commerce, Natcast, the State of Arizona, Arizona Commerce Authority, and Arizona State University. It is expected to be operational as early as Q4 of 2028. As part of its engagement in this project, ASU will provide immediate access to ASU Core Research Facilities; Natcast and NAPMP researchers as well as NSTC members will have access to ASU's cutting-edge resources, including the MacroTechnology Works (MTW).

The facility will be amplified by Arizona's robust and growing microelectronics landscape, including leading front-end semiconductor manufacturing, equipment and materials suppliers, and advanced packaging companies as well as a vibrant university research environment and pioneering workforce training initiatives at community colleges and more. Since 2020, semiconductor industry leaders have announced more than 40 expansions in the state, representing more than 16,000 good-paying jobs and over $102 billion in investment. The expected partnership with ASU will jumpstart R&D in these areas and leverage the substantial programs underway at the university, solidifying Arizona's place at the center of America's advanced manufacturing economy and opening pathways for continued business investment and job growth.

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"Today's announcement solidifies Arizona's position as a global hub for advanced manufacturing and innovation," said Arizona Governor Katie Hobbs. "This flagship facility will serve as an anchor for Arizona's thriving semiconductor ecosystem while supporting R&D and supply chain resiliency nationwide. This investment ensures the next generation of this critical, leading-edge technology is developed here in Arizona, while we support the workforce and jobs of the future. I'm grateful to Secretary Raimondo and the Commerce Department and our Arizona Congressional delegation for their support. I also want to recognize the hard work of the Arizona Commerce Authority, ASU, and all their partners to win this national laboratory for our state."

"A strong research and development ecosystem is essential to ensuring the United States remains at the forefront of semiconductor innovation," said U.S. Secretary of Commerce Gina Raimondo. "Arizona has long been a hub for technological progress, and this new facility will strengthen our domestic supply chain, drive advanced manufacturing breakthroughs, and secure America's leadership in this critical industry. Thanks to the bipartisan CHIPS and Science Act, combined with the other two CHIPS for America R&D flagship facilities, we will help bring American innovations to the global market, further securing our national and economic security."

"Thanks to the bipartisan CHIPS and Science act, we are investing at historic levels in the technologies of both today and tomorrow," said White House Deputy Chief of Staff Natalie Quillian. "Today's announcement with ASU ensures the United States will continue to be a leader in research and development and win the future by investing in skilled workers, moonshot technologies, and the advancements needed to stay ahead in critical industries, such as AI."

"The PPF will play a critical role in advancing semiconductor innovation across the country," said Deirdre Hanford, Natcast CEO. "This facility will be a premier destination where researchers from industry, academia, startups, and the broader semiconductor ecosystem will convene to explore, experiment, and collaborate on the next generation of semiconductor and packaging technologies that will power the industries of the future."

"This groundbreaking effort will mean that researchers and startups won't need to go to China or Europe to test out their cutting-edge prototype microchips-they'll be able to do that right here in America. Creating this world-class prototyping and packaging facility was a priority of mine when negotiating the Chips and Science Act. The United States must lead the way in semiconductor research and development, and there's nowhere more appropriate for it than Arizona," said Senator Mark Kelly. "The most advanced microchips in the world that power everything from AI to quantum computing will now be able to be developed, tested, manufactured, and packaged in our state. I'm grateful for Arizona State University's commitment to being at the forefront of microchip innovation, and to the years of partnership between Arizona's elected leaders-Republicans and Democrats-our business community, and our economic development leaders to make this happen."

"Arizona continues to prove its role as not just a nationwide leader, but a global leader, in semiconductor research and development," said Senator Ruben Gallego. "With this announcement, our state will serve as a driver of innovation for the semiconductor ecosystem in the country while creating thousands of high-paying jobs for hardworking Arizonans. Today's announcement is why I fought in Congress to get the Chips Act into law. Thank you to Arizona State University, our business leaders, and multiple administrations across the years for making this bipartisan achievement possible."

"Arizona is the ideal choice to host the co-located NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility," said Rep. Andy Biggs. "With the fastest growing semiconductor ecosystem in the country, Arizona is ready to support the R&D, manufacturing, packaging, and workforce needs of the industry. It's crucial that America continue to be a leader in semiconductor innovation and manufacturing, and Arizona is perfectly suited to be a part of that effort."

"Future-defining advancements in technology like AI wouldn't be possible without advanced packaging. It's a national security imperative that the U.S. out-innovate our global competitors," said Rep. Greg Stanton. "Thanks to our CHIPS Act, this new Advanced Packaging Piloting Facility at ASU will help develop the next-generation technology America needs to compete and win on the world stage-and train the future of the semiconductor workforce here at home."

"It's imperative that the United States maintain the capabilities to out-perform our competitors and adversaries," said Rep. Abe Hamadeh. "This state-of-the-art research facility will be a beacon of semiconductor innovation, attracting companies from around the world to Arizona to test and prototype leading-edge technologies. These efforts will help ensure America, not China or anywhere else, leads the critical breakthroughs of the future."

"With this selection Arizona will remain a leader in the nation in developing next generation technology," said Rep. Raul Grijalva. "It is my hope that with this critical investment we can demonstrate the ability to improve efficiency, streamline production, and reduce power consumption within semiconductor development."

"I am excited to see that Arizona was selected to host a major facility for advanced semiconductor chips packaging," said Maricopa County Supervisor and former Rep. Debbie Lesko. "This significant decision from the federal government proves yet again that our state has one of the most business-friendly environments in the nation. I look forward to seeing the economic benefits for Arizona when this facility opens, and I am grateful to have been a part of this bipartisan effort to bring another CHIPS R&D operation to the Grand Canyon State."

"This is the largest of three CHIPS R&D flagship facilities being launched that together represent the greatest national laboratory investments since those that came out of the Manhattan Project," said ASU President Dr. Michael Crow. "The CHIPS R&D project will create a national lab that will be the final piece in a semiconductor ecosystem that serves the nation with research and development, manufacturing and workforce development all right here in Arizona. You'll have all three things together in the same place to help the nation; Arizona will be the hub nationally - and ASU is at the center of the hub."

"This announcement is a testament to Arizona's robust semiconductor ecosystem and national network of industry and research partners advancing technology innovation," said Sandra Watson, President and CEO of the Arizona Commerce Authority. "We are incredibly grateful to Governor Hobbs, Senator Kelly, our Congressional delegation, the Arizona Legislature, the Commerce Department, Chips Office, Natcast, and all our industry partners for their leadership and collaboration. I especially want to recognize Dr. Michael Crow and his team at ASU for their steadfast partnership."

"Tempe and Arizona continue to be at the center of groundbreaking research and development, leading the way in next-generation technology," said Tempe Mayor Corey Woods. "We are proud to be the home of this new flagship facility that will serve as a hub for semiconductor innovation nationwide. We thank our partners at ACA and ASU, which have developed a world-class research ecosystem right in our backyard to serve our community and beyond."

"Today's announcement is a huge win for Arizona and represents the culmination of many years of work to establish the best business environment in the country," said Danny Seiden, President and CEO of the Arizona Chamber of Commerce and Industry. "This facility will serve as a magnet for companies from all over the country looking to advance R&D and represents another landmark expansion for Arizona's semiconductor industry. I want to credit Sandra Watson and the ACA, ASU, and all the partners who supported this project."

"Intel applauds the U.S. Department of Commerce and Natcast's decision to establish the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility in Arizona," said Sanjay Natarajan, Sr. Vice President at Intel Corp. "Building on our 45-year legacy of innovation and investment in the state, Intel will actively collaborate with industry and research leaders at this facility to drive breakthrough advances in leading edge semiconductor and packaging technologies. We plan to provide our expertise and resources to accelerate innovation, strengthen supply chain resilience, and enhance U.S. competitiveness. Intel will play a vital role in ensuring the long-term success of this historic research initiative through direct engagement and strategic support."

"This announcement is tremendous news for our industry as we begin a new year. Natcast's decision to locate the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility in Arizona is one that will have wide-ranging positive benefits well beyond 2025," said Rose Castanares, president of TSMC Arizona. "Arizona's semiconductor footprint is rapidly expanding, and its leadership in both cutting-edge manufacturing and advanced packaging provides a one-of-a-kind opportunity to accelerate research and innovation. With our historic $65 billion investment, TSMC Arizona is deeply committed to our US operation, and we look forward to collaborating with industry peers, research leaders and Natcast on its advanced packaging priorities."

"This facility promises to accelerate innovation that will advance U.S. competitiveness and supply chain resilience, and at Amkor, we look forward to supporting its long-term success," said Kevin Engel, Executive Vice President of Business Units at Amkor.

"We commend the choice to establish the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility in Arizona, a state at the forefront of a thriving semiconductor industry," said Hichem M'Saad, CEO of ASM and Chair of the Management Board. "This marks an exciting era for the industry and for ASM, as we celebrate nearly five decades of driving groundbreaking chip innovation in Arizona. This development is a pivotal moment in advancing collaborative research and innovation in advanced packaging, and we eagerly anticipate its lasting success."

"Congratulations to the State of Arizona for being selected as the home of the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility," said Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials. "Applied Materials has a long and successful history of collaborating with industry and research partners in Arizona, and we are pleased to participate in the growth of the region in support of U.S. leadership in semiconductors."

"SkyWater is pioneering advancements for next-generation packaging, providing a historic opportunity for collaboration with industry and research leaders," said SkyWater CEO Thomas Sonderman. "We look forward to this partnership, ensuring we deliver the best ROI possible for this critical investment, while supporting its long-term success."

"We applaud the decision to locate the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility in Arizona," said Rama Puligadda, Chief Technical Officer at Brewer Science. "As Brewer Science continues to pioneer next-generation materials needed for chip innovation, we look forward to partnering on this important research effort for our industry and supporting its long-term success."

"Arizona is home to a vibrant and rapidly expanding semiconductor ecosystem and is uniquely positioned to host this facility. We applaud the decision to locate the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility in Arizona and look forward to its long-term success," said Steve Sanghi, CEO, President and Chair of the board, Microchip Technology Inc.

"This once in a generation investment will boost the entire semiconductor industry with powerful capabilities to further develop and scale new technologies," said Tim Olson, CEO of Deca Technologies. "Deca and ASU have already established a broad-ranging cooperation centered on advanced packaging. With the new pilot facility investment in Arizona, we'll no doubt see an influx of private-sector investments and collaborations, new partnerships and exciting new ideas that will accelerate America's efforts to regain preeminence in the highly competitive global semiconductor industry."

"On behalf of Purdue University, I am pleased to express our strong support for the new NSTC/NAPMP R&D facility that will further enhance America's resurgence in semiconductor manufacturing across the country," said Mung Chiang, president of Purdue University and Roscoe H. George Distinguished Professor of electrical and computer engineering. "The success of the CHIPS and Science Act in creating jobs, workforce and innovation will require a whole of nation approach. As the workforce-research center of a new, rapidly emerging semiconductor industry ecosystem in the Silicon Heartland with leading companies such as SK hynix, Purdue looks forward to building on our collaborations with ASU colleagues in this particular proposal to execute for its successful implementation in the coming years."

"Arizona State University and the University of Central Florida have long been leaders in innovation and collaboration to solve the world's hardest problems," said UCF President Alexander N. Cartwright. "UCF is pleased to support ASU, the U.S. Department of Commerce, and Natcast's efforts to invent the future of semiconductors and train the next generation of talent right here in the United States."

"The University of California applauds the selection of Arizona to host the CHIPS for America prototyping and packaging center, which will complement the CHIPS for America design and collaboration facility in Sunnyvale, California, previously announced in November," said University of California President Michael V. Drake. "In partnership with Arizona State University, the University of California system is ready to get to work designing, prototyping, and packaging the next generation of semiconductors, while also training engineers to maintain U.S. semiconductor leadership through the 21st century and beyond."

Media Contact

Alyssa Tufts, Arizona Commerce Authority, [email protected]

About the Arizona Commerce Authority
The Arizona Commerce Authority (ACA) is the state's leading economic development organization with a streamlined mission to grow and strengthen Arizona's economy. The ACA uses a three-pronged approach to advance the overall economy: attract, expand, create - attract out-of-state companies to establish operations in Arizona; work with existing companies to expand their business in Arizona and beyond; and help entrepreneurs create new Arizona businesses in targeted industries. For more information, please visit azcommerce.com and follow the ACA on X @azcommerce.

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