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Arizona is poised for further momentum after TSMC, Intel and other semiconductor victories

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Arizona is poised for further momentum after TSMC, Intel and other semiconductor victories


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Arizona, over the past three years, has scored some huge victories in luring major semiconductor investments to the state, including a major Intel Corp. expansion in Chandler and the construction of three new factories in north Phoenix by Taiwan Semiconductor Manufacturing Co.

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Could all this be the prelude to an even bigger second act?

“There is critical mass — that’s the opportunity we have now in Arizona,” said Brian Harrison, president of TSMC Arizona. “We have a great opportunity to do even more in the next 10 years.”

Harrison described how the company’s factories or fabs in Taiwan have become hubs around which chemical suppliers, tool-equipment makers and other businesses have clustered. His comments came during a “Silicon Desert” forum hosted by EMD Electronics, which supplies equipment and provides testing services to semiconductor customers in Arizona and elsewhere.

The demand for semiconductors remains on a growth track, fueled by consumer products such as cellphones and computers, automobiles, data centers, and pretty much every other modern electrical device or industry. Artificial intelligence has provided new impetus.

A rising percentage of chips now are manufactured abroad, mainly in Taiwan, and reversing that trend has been the thrust of the CHIPS & Science Act of 2022. Under that legislation, the U.S. Commerce Department so far this year has awarded up to $8.5 billion in grants to Intel and $6.5 billion to TSMC, along with $162 million to Chandler-based Microchip Technology and other recipients.

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Semiconductor manufacturers are using that money, combined with pledges for billions of dollars more in low-rate federal loans, to leverage their own investments.

TSMC’s planned Arizona investments have risen to $65 billion, along with $20 billion in recent new commitments by Intel. Those have helped to boost total semiconductor investments in Arizona to more than $100 million over the past four years, said Sandra Watson, president and CEO of the Arizona Commerce Authority and another speaker at the forum hosted by EMD Electronics, a business of German science and technology giant Merck KGaA.  

Planning began before passage of key federal legislation

Arizona has fared well lately in this regard partly because of advance planning, Watson said. In 2021, a year before the CHIPS Act was enacted, the Commerce Authority brought together more than 50 industry leaders from various states, along with educational institutions such as Arizona State University and others, to develop a strategy. “We were able to establish a very strong plan,” Watson said, with collaboration the key.

Harrison echoed that sentiment and noted that TSMC considered many other locations in various states for its factories or fabs. Many of these other places had “different factions with their own vague agendas,” he said, rather than a unified gameplan like Arizona. “Everyone has water and roads,” he quipped.

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More Arizona-focused technology announcements will be forthcoming, said Watson and Sean Fogarty, vice president of international business development at the Greater Phoenix Economic Council.

“We have a healthy pipeline of prospects” that are considering expansion here, with foreign businesses representing about one-third of those companies, Fogarty said.

Arizona already features a deep supplier base, a pro-business environment, favorable tax policies and an expanding workforce, Fogarty said. All that complements an educational system that is ramping up to funnel workers into the industry, from engineers at Arizona State University and the University of Arizona to technicians receiving training through the Maricopa Community College system and other programs. In addition, Arizona continues to add population, with many of the newcomers in the prime 18-to-44 working-age group, Fogarty said.

The power to make chip-expansion happen

Another critical consideration is the electricity to power these new industrial complexes, as well as related industries such as data centers, of which metro Phoenix now has one of the highest concentrations in the Western Hemisphere.

The EMD Electronics conference included assurances from both of the major electric utilities operating around metro Phoenix that power will be available when expansions get up and running.

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“We are aggressively (adding) new resources over the next five years,” said Karla Moran, manager of economic development at Salt River Project. That includes more solar generation, mobile-home-sized batteries to store power early in the morning for release later in the day, and additional hydro capacity.

Kelly Patton, economic development manager at Arizona Public Service, said much the same. “We have prepared for this growth,” she said.

Both utility executives made the case for continuing to keep natural gas-fired plants in the mix for a while longer, despite emissions that make them targets for criticism from environmental groups and others. “If a monsoon hits and the solar field goes down, we can ramp up that natural gas,” Patton said.

Actually, the availability of renewable energy is another factor that gives Arizona an edge, as some companies expanding here, including Apple with its new data center in Mesa, have asked for it, Watson said.

A key factor in the Phoenix area’s success in attracting semiconductor manufacturers and other industries, she added, was ongoing efforts to keep the major utilities in the loop.

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Some 54 megaprojects are in the works now across all industries, Watson said, and the Commerce Authority shares that information with local utilities. “We map out what sites they are considering so that our utilities can plan,” she said. “So the utilities know, in the next five years, where they need to be.”

While water is another critical need for the semiconductor industry, conference participants didn’t assess it as a key obstacle for Arizona, especially as manufacturers, including Intel, are striving to improve their recycling efforts. SRP, which supplies about half of the Valley’s water needs, said its reservoirs by later this spring are expected to be near full capacity.

For Arizona’s semiconductor industry, many of the “i’s” still need to be dotted and the “t’s” crossed. The giant fabs and expansion projects still need to be built, equipped and staffed with trained workers, many of whom haven’t completed or even started their educations. Suppliers need to be ready and waiting, with fewer of the supply-chain disruptions that have plagued the industry in recent years. Labor relations need to be maintained if not improved. The power and water for these complexes need to keep flowing, and partnerships strengthened.

But the infrastructure and other foundations have been laid and Arizona is in a good position for expansion, said Cori Masters, a senior semiconductor research analyst based in the Valley for Gartner.

“Now’s the time for ramping,” she said.

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Reach the writer at russ.wiles@arizonarepublic.com.



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AP men’s basketball Top 25: Arizona remains No. 1, Nebraska earns highest ranking since 1991

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AP men’s basketball Top 25: Arizona remains No. 1, Nebraska earns highest ranking since 1991


Arizona maintained its position as the No. 1 team in the Associated Press men’s basketball Top 25 on Monday, earning 42 of 61 first-place votes after a week that included a 96-75 win over No. 16 Alabama.

The Wildcats (9-0), one of seven undefeated teams remaining in Division I, already own five wins over high-major opponents.

There was little movement in the top 10 after a week with few upsets. Michigan (10-0), Duke (10-0), Iowa State (11-0) and UConn (10-1) remained Nos. 2-5, respectively. The only team to move up in the top 10 was No. 7 Gonzaga (10-1), which swapped places with No. 8 Houston (10-1) after adding another top-tier win over UCLA on Saturday.

The greater movement occurred between Nos. 10-25.

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Nebraska (11-0) was the biggest riser, jumping eight spots to No. 15 after Saturday’s 83-80, buzzer-beating win over No. 18 Illinois. The Huskers, the lone power-conference team to never win an NCAA Tournament game, achieved their highest ranking since 1990-91, when they finished the season No. 11.

Illinois (8-3) and No. 23 Florida (6-4) were the biggest fallers, dropping five spots apiece.

Georgia (9-1) was the lone newcomer to the poll at No. 25, while UCLA (7-3) dropped out.

Here’s the full poll, along with my ballot:

Rank

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Team

  

Record

  

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Prev

  

CJ’s vote

  

1

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9-0

1

2

2

10-0

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2

1

3

10-0

3

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5

4

11-0

4

3

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5

10-1

5

4

6

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10-1

6

6

7

10-1

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8

7

8

10-1

7

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10

9

9-1

9

9

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10

9-1

10

8

11

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9-1

11

11

12

9-1

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14

15

13

10-0

15

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12

14

8-2

17

14

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15

11-0

23

13

16

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7-3

12

17

17

8-3

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19

16

18

8-3

13

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18

19

7-3

16

21

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20

7-3

20

20

21

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8-3

21

NR

22

6-3

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22

24

23

6-4

18

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19

24

9-1

24

22

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25

9-1

NR

25

NR

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9-2

NR

23

Others receiving votes: USC 68, Iowa 47, Seton Hall 46, LSU 19, Kentucky 19, UCLA 16, Clemson 14, California 13, Saint Mary’s 12, Arizona State 5, Villanova 5, Notre Dame 4, Indiana 4, Miami (Ohio) 4, Miami (Fla.) 4, Utah State 2, Saint Louis 1, Wisconsin 1.

How good is Nebraska?

I caught Nebraska in person earlier this season when it beat New Mexico and Kansas State in Kansas City, Mo., and I’ve been a believer since. It’s a classic Fred Hoiberg team with a playmaking big, tons of shooting and awesome offensive execution. But what also stood out was how hard the Huskers played, and the defense is better than many of his best teams of the past at Iowa State.

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The numbers are starting to back that up. The Huskers are up to 28th in adjusted defensive efficiency, the highest ranking ever for a Hoiberg defense. All this team was missing was signature wins, and it got two this past week, crushing Wisconsin 90-60 and then winning on the road at No. 18 Illinois on a last-second shot.

Arkansas could keep climbing

Arkansas fell out of my rankings for a few weeks early in the season because its computer numbers were bad after a few close calls against mid-majors. It was obvious the talent was there, but the Razorbacks just weren’t sharp early. They’re starting to play up to their talent, and I moved them up to 14th this week, which is one spot below where I had them in the preseason.

John Calipari’s best teams always have an NBA-level point guard, and he has one in Darius Acuff, who is averaging 17.7 points and 5.7 assists. Calipari also has three big wings who could develop into pros — Meleek Thomas, Karter Knox and Billy Richmond III — and as I wrote about in my weekly rankings, Trevon Brazile is playing the best ball of his career. This team is deeper and more talented than last year’s group, which got hot late and made the Sweet 16. Might still be a little low on this group.

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Best team not ranked: Iowa

Iowa has yet to make the AP Top 25, but I’ve ranked the Hawkeyes the last three weeks and would argue their case was made even stronger last week in a loss. Iowa led Iowa State by 13 in the first half last Thursday at Hilton Coliseum and ended up taking a 4-point loss, which actually moved it up in the computer models. The Hawkeyes now rank 20th at KenPom and Bart Torvik, 19th in the NET and 21st at Evan Miya.

As the Hawkeyes proved against Iowa State, they are a tough out. Similar to Drake last year, Ben McCollum’s second Division I team gives nothing in transition, is hard to score against in the half court and is exhaustingly patient offensively waiting for a great shot to develop.

I can understand why my fellow voters aren’t there yet. With Ole Miss being a disappointment, you could argue Iowa is missing a signature win. The first opportunity is Jan. 3 when Iowa hosts UCLA.





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Arizona baseball pitching coach John DeRouin taking position with Mets, per report

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Arizona baseball pitching coach John DeRouin taking position with Mets, per report


Pitching was a big reason why Arizona made it back to the College World Series last season. The return of many key arms for 2026 makes it likely the Wildcats will again have a stellar staff.

Who guides those pitchers, however, is uncertain.

Michael Lev of the Arizona Daily Star is reporting that pitching coach John DeRouin is leaving the program for a position within the New York Mets organization. DeRouin had been elevated to pitching coach over the summer after Kevin Vance was hired as head coach at San Diego State.

DeRouin, who was a pitching strategist under Vance the previous two seasons, was integral in developing Arizona’s arms, particularly starters Owen Kramkowski and Smith Bailey and reliever Tony Pluta. That trio are among several key pitchers returning from the CWS team, with DeRouin’s promotion factoring in their decisions to stay in Tucson.

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“John is like the pitching whisperer,” head coach Chip Hale said last month.

Hale could promote from within again, elevating Owen Cuffe. Whoever he hires will technically be his fourth pitching coach in five seasons. Dave Lawn handled the role in 2022-23, retained from Jay Johnson’s staff, before Vance was hired in 2024.

DeRouin is the latest in a string of college baseball coaches leaving for pro jobs. The most notable is Tennessee head coach, hired last month as manager of the San Francisco Giants

Arizona begins preseason practice in January ahead of the 2026 opener Feb. 13 against former Pac-12 rival Stanford at a tournament in Surprise.



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Report: Michigan search includes Arizona State’s Kenny Dillingham, Missouri’s Eli Drinkwitz

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Report: Michigan search includes Arizona State’s Kenny Dillingham, Missouri’s Eli Drinkwitz


ANN ARBOR, Mich. — The firm hired by Michigan to search for a football coach to replace Sherrone Moore has contacted representatives for Arizona State’s Kenny Dillingham and Missouri’s Eli Drinkwitz, according to a person familiar with the situation.

The person spoke to The Associated Press on condition of anonymity Saturday because they were not authorized to share details of the search.

Moore was fired on Wednesday, when the school said an investigation uncovered his inappropriate relationship with a staffer. Two days later, Moore was charged with three crimes after prosecutors said he “barged his way” into the apartment of a woman he’d been having an affair with and threatened to kill himself.

College football’s winning program suddenly needs a coach.

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After the 35-year-old Dillingham was linked to numerous open jobs last month, he said he was not leaving his alma mater.

Two weeks ago, Drinkwitz agreed to a six-year contract that increases his average compensation to $10.75 million annually.

Michigan is hoping to hire a coach this month, helping its chances of retaining recruits and keeping key players out of the transfer portal in January.

Dillingham, who is from Scottsdale, Arizona, graduated from Arizona State in 2013 and started his coaching career as an assistant for the Sun Devils. After coaching at Memphis, he was the offensive coordinator for Auburn, Florida State and Oregon before returning to Arizona State.

Dillingham orchestrated a quick turnaround, leading the Sun Devils to the Big 12 championship and the College Football Playoff for the first time last year.

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Arizona State was 8-4 this season, improving Dillingham’s record to 22-16 over three seasons.

The 42-year-old Drinkwitz is 46-28 in six seasons at Missouri after going 12-1 in a year at Appalachian State. He has built the Tigers into a steady Southeastern Conference program, earning five straight bowl bids.





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