Arizona

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

Published

9 months ago

May 6, 2024

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

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.

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.

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.

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.

“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.

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.

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

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Arizona

Amazon suspends commercial drone deliveries in Texas, Arizona after two crashes in rainy weather

Published

3 hours ago

January 20, 2025

Press Room

Amazon suspends commercial drone deliveries in Texas, Arizona after two crashes in rainy weather

Amazon has temporarily suspended its commercial drone delivery operations in Texas and Arizona after two of its latest MK30 models crashed in rainy weather at a testing facility.

The company announced on Friday that it was pausing the program to implement software updates to ensure the safety of its fleet.

The crashes, which occurred in December at Amazon’s Pendleton, Ore. testing site, were attributed to a software malfunction caused by light rain.

One of the drones caught fire upon impact.

Although an Amazon spokesperson told Bloomberg News that the crashes were not the “primary reason” for the pause, the company declined to specify other issues being addressed in the software update.

Amazon’s MK30 drones had been delivering packages in College Station, Texas, and Tolleson, Ariz. after the company won approval from the Federal Aviation Administration in October.

Last summer, the mayor of College Station sent a strongly worded letter to the FAA to protest Amazon’s drones and their noise levels, which some locals likened to a “giant hive of bees.”

The six-propeller model is designed to be lighter, quieter and capable of flying in light rain — a feature now under scrutiny.

“We’re currently in the process of making software changes to the drone and will be voluntarily pausing our commercial operations,” Amazon spokesperson Sam Stephenson told Bloomberg News.

“Deliveries will resume once the updates are completed and approved by the FAA.”

Employees at the affected drone sites will continue to be paid during the suspension.

The decision marks another setback for Amazon’s Prime Air, which has struggled for over a decade to expand its drone delivery service.

Despite regulatory milestones, including FAA clearance to fly beyond an operator’s visual line of sight, the program remains in limited trials.

Amazon completed its first test flight in Italy last month and is seeking approvals for operations in the UK.

In addition to the December crashes, a previously unreported incident in September saw two Amazon drones collide due to operator error.

According to an FAA report, the company was testing the MK30’s response to motor failure when a second drone was mistakenly launched on a collision course.

The drones crashed midair and spiraled to the ground. Amazon has since revised its operating procedures and training protocols.

The National Transportation Safety Board and FAA are investigating both the September and December crashes.

Amazon maintains that such tests are essential for improving drone safety.

“The purpose of these tests is to push our aircraft past their limits — it would be irresponsible not to do that,” Stephenson said.

Amazon’s drone program has encountered multiple safety concerns in recent years.

A Bloomberg investigation previously documented five crashes in 2021, including one that caused a brushfire.

The FAA recorded at least four additional crashes in 2022, three due to sudden power loss.

In November 2023, Amazon temporarily halted operations after an MK27-2 drone crashed when its battery failed mid-flight.

As Amazon works to refine its technology, it remains uncertain whether the company will be able to overcome its setbacks and make drone delivery a permanent mainstay.

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Arizona

Major ammunition bust made in Arizona: Cochise County Sheriff's Office

Published

11 hours ago

January 20, 2025

Press Room

Major ammunition bust made in Arizona: Cochise County Sheriff's Office

Big ammunition bust in Southeastern Arizona

Officials in Cochise County say they found thousands of rounds of heavy caliber bullets during a major bust.

PHOENIX – Authorities in Cochise County released details on Jan. 19 surrounding a major bust involving ammunition.

The bust, according to officials, was made in mid-January as part of a multi-agency effort.

Bust involved tens of thousands of bullets

Per a statement made to the Cochise County Sheriff’s Office Facebook page, the busts involved two cars that were headed east on Interstate 10 from the Phoenix area.

What we know:

According to the statement, crews seized 10,000 rounds of .50 caliber ammunition, and 19,640 rounds of 7.62×39 ammunition.

Officials identified the people in the two vehicles as three asylum seekers, one of whom is from Cuba, and an American citizen out of Texas.

What they’re saying:

“The vehicle containing the 7.62×39 ammunition was interdicted by the Pinal County Sheriff’s office. Still, the second vehicle containing the .50 caliber ammunition was located by CNTA investigators at Motel 6 in Benson,” officials with CCSO wrote.

What’s next:

Cochise County officials say an investigation is ongoing, and it is being led by Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Crime and Public SafetyCochise CountyPinal CountyNews

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Arizona

Arizona women’s basketball controls Kansas with balanced attack

Published

19 hours ago

January 19, 2025

Press Room

Arizona women’s basketball controls Kansas with balanced attack

The Arizona Wildcats dominated every aspect of the game as they defeated the Kansas Jayhawks 74-59 in Phog Allen Fieldhouse on Sunday afternoon. The Wildcats led wire-to-wire, ending with superior numbers in field goal percentage, 3-point shooting, turnovers, points off turnovers, assists, bench scoring, and total rebounds as five players scored in double figures.

Arizona head coach Adia Barnes moved back to her original starting lineup of Jada Williams, Skylar Jones, Paulina Paris, Isis Beh, and Breya Cunningham for the first time since facing Utah in their second Big 12 contest. She also got big contributions off the bench from Lauryn Swann and Montaya Dew.

Williams had a strong showing as she played less than an hour from her hometown of Kansas City, Mo. The sophomore point guard scored 13 points on 5-of-12 shooting while dishing out five assists and only turning the ball over once in 35 minutes of play. She added four rebounds and a block.

Beh had a double-double with 10 points and 10 rebounds. She added three steals and three assists.

Paris matched Williams’ 5-for-12 shooting to gather 11 points. She also had one rebound and one assist.

Swann and Dew were difference-makers off the bench, which outscored the KU bench 32-2. The pair of first-year players accounted for 28 of the 32 points for the Wildcats.

Swann returned to a reserve role last Thursday against Kansas State after starting three games. It seemed to suit her. She had a team-high 17 points on 5-for-8 shooting, including going 3 for 5 from the 3-point line. She grabbed four boards and one steal in 27 minutes.

Dew showed the kind of offensive aggressiveness she isn’t known for, hitting from outside and in the paint. She scored a career-high 11 points on 3-for-5 shooting. She hit 2 of 3 shots from beyond the arc and went 3-for-4 from the free-throw line. She filled the stat sheet with five rebounds, three assists, and two blocks.

The 3-point shooting was on for most of the lineup. The Wildcats went 6-for-14 from outside in the first half to open up a 37-23 lead after 20 minutes. They ended the game 9 for 22 from 3-point range with even Beh connecting on an outside shot. It kept the distance between themselves and a Jayhawks team that was just 2 for 14 from outside.

On Thursday against K-State, Arizona had stretches of moving the ball well but also reverted to old habits of overdribbling and holding onto the ball. After that, Barnes pointed to improvements and said they wanted to see a little more of those gains each game. The Wildcats avoided that against the Jayhawks, leading to 18 assists on 27 made buckets. KU had just six assists.

In their game in Manhattan, the Wildcats started cold as ice. They were down 8-0 before hitting their first bucket with 4:12 left in the opening quarter. They turned that on its head in Lawrence.

UA opened on an 8-2 run in the first four minutes of the first period. It had its first double-digit lead at 19-9 when Dew hit her first 3-point shot at the 1:25 mark.

The Wildcats’ biggest lead of the half came when Paris hit a layup with 26 seconds left in the second quarter to go ahead by 16. They went into the locker room up by 14.

The third quarter started a bit shaky with two straight turnovers, but Arizona settled down. KU got the lead down to 10 a couple of times in the period but could never cut it to single digits. Jayhawks star S’Mya Nichols hit a 3 at the buzzer but the Wildcats still led by 12 going to the final 10 minutes.

The Jayhawks cut the lead to 10 twice to open the fourth quarter, but Williams responded each time with a bucket on the other end. The Arizona lead never dropped below 12 points again. The Wildcats’ largest lead of 17 came on a Paris jumper with 18 seconds to go.

Arizona improved to 12-8 overall and 3-4 in the Big 12. Kansas moved to 12-6 on the year and 2-5 in conference play.

The Wildcats and Colorado are tied with the ninth-best records in the league, half a game behind Arizona’s next opponent. Arizona was picked to finish seventh in the Big 12.

The Cincinnati Bearcats (11-5, 3-3 Big 12) come to McKale Center on Wednesday, Jan. 22.

This story will be updated.

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