Round Up: Let the CHIPS Fall Where They May
Arizona's economic slam dunk, Coyotes skating on thin ice, and the judicial elephant in the room.
In what was a significant week for Arizona athletics, State Farm Stadium once again hosted the sport’s elite with the NCAA Men’s Basketball Final Four, while the Coyotes hinted at what their future in the Valley would look like. As confetti rained down on the UConn Huskies for the second straight year, it remains to be seen if Arizona’s hockey team can ice a stadium deal in the coming months.
Just as Arizona has attracted increasing attention centered around its sports industry, it has also garnered attention in the semiconductor sector. Last week the Biden Administration released an announcement regarding Taiwan Semiconductor Manufacturing Company’s (TSMC) plans to further invest in the state and was applauded by officials at all levels of government.
More CHIPS for Arizona
Following last month’s preliminary announcement regarding Taiwan Semiconductor Manufacturing Company’s (TSMC) award of more than $5 billion in federal grants from the U.S. government, the Biden Administration advanced plans to further Arizona’s role in the semiconductor industry. In separate press releases, the U.S. Department of Commerce joined TSMC Arizona in announcing an agreement that would funnel $6.6 billion in federal funds to the state as part of an initiative to construct a third “fab” in the state. The Commerce Department and TSMC signed a non-binding preliminary memorandum of terms (PMT) establishing a funding stream that would “support TSMC’s investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona, which will manufacture the world’s most advanced semiconductors.”
Following the release, several government officials and TSMC leaders–including Commerce Secretary Gina Raimondo and TSMC Chairman Mark Liu–noted their support of the agreement. Also in conjunction with the announcement, President Biden released a statement in which he “thanked the CHIPS and Science Act – a key part of [his] Investing in America agenda” for helping “semiconductor manufacturing and jobs [to] mak[e] a comeback.”
President Joe Biden: “Thanks to this investment, TSMC will also build a third chip factory in Phoenix, increasing its total investment in Arizona to $65 billion and creating over 25,000 direct construction and manufacturing jobs, along with thousands of indirect jobs. These facilities will manufacture the most advanced chips in the world, putting us on track to produce 20% of the world’s leading-edge semiconductors by 2030. The agreement also dedicates $50 million of CHIPS funding to training and developing the local workforce, so workers don’t have to leave their hometowns to find good-paying jobs in innovative industries. A year and a half ago, I toured the site of TSMC’s first new fab in Phoenix, Arizona. TSMC’s renewed commitment to the United States and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”
Secretary of Commerce Gina Raimondo: “One of the key goals of President Biden’s CHIPS and Science Act was to bring the most advanced chip manufacturing in the world to the U.S., and with this announcement and TSMC’s increased investment in their Arizona campus, we are working to achieve that goal. The leading-edge semiconductors that will be made here in Arizona are foundational to the technology that will define global economic and national security in the 21st century, including AI and high-performance computing. Thanks to President Biden’s leadership and TSMC’s continued investments in U.S. semiconductor manufacturing, this proposed funding would help make our supply chains more secure and create thousands of good-quality construction and manufacturing jobs for Arizonans.”
Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio: “America’s ability to maintain our competitive edge in advanced technologies like artificial intelligence is essential to igniting the next generation of research, innovation, development, and production. Our proposed support for TSMC Arizona represents an inflection point for America’s innovative capacity that would restore our nation’s leadership in an industry that is foundational to the U.S. and global digital economy.”
TSMC Chairman Dr. Mark Liu: “The proposed funding from the CHIPS and Science Act would provide TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States. Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”
TSMC CEO Dr. C.C. Wei: “We are honored to support our customers who have been pioneers in mobile, artificial intelligence and high-performance computing, whether in chip design, hardware systems or software, algorithms, and large language models. They are the innovators driving demand for the most advanced silicon that TSMC can provide. As their foundry partner, we will help them unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona. We are thrilled by the progress of our Arizona site to date and are committed to its long-term success.”
U.S. Senator Kyrsten Sinema (I-AZ): “Today’s TSMC investment – fueled by our bipartisan CHIPS and Science law – is making transformational investments in our state, creating strong Arizona careers, protecting our national security, and strengthening Arizona’s leadership in semiconductor manufacturing.”’
U.S. Senator Mark Kelly (D-AZ): “It’s an exciting day for Arizona where we are leading the way in bringing the most advanced microchip manufacturing back to America. That’s going to create thousands of great-paying jobs, many of which don’t require a four-year degree, and get more workers the skills they need to start these careers. It will also strengthen our national security by bringing critical technology supply chains back from overseas and reinforcing ties between the United States and Taiwan. This award is the product of the hard work we did to pass the CHIPS Act and the hard work that Mayor Gallego and our state and local economic development leaders did to bring TSMC to Phoenix.”
U.S. Representative Ruben Gallego (D-AZ-03): “I helped pass the CHIPS ACT for exactly this reason. Now, the world's most advanced semiconductors will be produced in Phoenix. [TSMC] will receive $6.6 billion in funding to build a third chip factory in Arizona, and create tens of thousands of good-paying jobs. This is what Kari Lake roots against.”
Phoenix Mayor Kate Gallego: “[TSMC] will receive up to $6.6 billion in CHIPS Act funding from the federal government—and they will build a third fab in north Phoenix. These investments will create thousands of high-wage jobs for families and transform our economy for generations to come. TSMC makes the world's most advanced semiconductors—the tiny brains that power our smartphones, home appliances, cars, and more. Like I said to CEO Dr. C.C. Wei in Taiwan last summer, I am excited that this cutting-edge technology will soon be made right here in Phoenix. Phoenix is proud to be on the forefront of the Biden administration’s charge to bring back critical American manufacturing, and as a designated [White House] Workforce Hub, we stand ready to deliver.”
Arizona Coyotes on Thin Ice
In seeking to stave off rumors of proposed relocation outside the Valley, the Arizona Coyotes’ upper brass released plans for a new “landmark development” at the Northwest corner of Scottsdale Road and Loop 101 in North Phoenix. According to their announcement, the stadium would hold 17,000 hockey fans, and up to 18,500 for non-hockey events. The Coyotes’ plan would also bring 400,000 square feet of retail, as well as 1,900 luxury residential units to the proposed location.
In an op-ed published on Monday, Scottsdale Mayor David Ortega argued that the relocation of the Coyotes to North Phoenix is “not feasible, or welcome.” Mayor Ortega specifically cited concerns regarding a lack of public infrastructure west of Scottsdale Road in the release. In a clarifying statement released the following day, Mayor Ortega emphasized that “the Coyotes developers did not consult with [him] or Scottsdale officials,” before subsequently noting his support for a stadium at 64th Street/Loop 101. His comments come just a few days after the Coyotes released the renderings for their new arena located near the northern edge of Scottsdale. While the Coyotes do not yet own this 95-acre plot, they have publicly revealed their plans to secure the property at a June auction.
Arizona Coyotes Chairman & Governor Alex Meruelo: “My family and I are committed to winning this land auction and building a transformative entertainment district that will not require taxpayer funding for the first time in Arizona history. We will buy this land, build this development, and finish a project that will incur the cost of more than $100 million in infrastructure improvements with no burden placed on taxpayers…We are excited that the proceeds from our land auction bid will also generate revenues to fund local education throughout the state of Arizona and support the communities that have been so loyal to the Coyotes for many years. Arizona is our home and an incredible market where the Coyotes belong. This district would provide a beautiful home for the Arizona Coyotes for decades to come. Our loyal fans deserve this vibrant gathering place that would serve as a landmark to create lifelong memories”
Coyotes President and CEO Xavier A. Gutierrez: “We are thrilled by the prospects of building this historic development for Arizona Coyotes fans and fans in waiting. This is more than just an arena project – it is a best-in-class urban redevelopment project that would transform a perfectly located parcel of land into an Arizona landmark, and create a vibrant neighborhood for individuals to live, work, and play…We are excited to continue to work with Gensler and AECOM Hunt, as we hope to convert our long-time vision into a reality for Phoenix. Their innovative designs and attention to every small detail make them the perfect partners as we seek to transform the Arizona skyline.”
Scottsdale Mayor David Ortega: “In March, Arizona State Land Department officials met in my office, and I pointed out that all Scottsdale Road improvements from the 101 north are entirely in our city. There is zero infrastructure west of Scottsdale Road. I demanded that infrastructure for the proposed site, including water and sewer, be pulled from Phoenix assets along 56th Street to the west. Scottsdale Water assets are absolutely not available. Furthermore, I have demanded that the 64th Street - AZ Loop 101 north exit be built out to serve the area, again to the west of Scottsdale Road. At our meeting, the Arizona State Land Department agreed that these requirements would be bundled with any successful bid for the property. I also met with the mayor of Phoenix who confirmed that all utilities must be extended from 56th Street.”
Phoenix Hosts NCAA Men’s Basketball Final Four
For the first time since 2017, the Phoenix area served as host for the NCAA Men’s Basketball Final Four. In what ultimately culminated in a second consecutive championship for the University of Connecticut (UConn), the four-day festivities drew tens of thousands of fans from all over the country to the Valley. According to a Common Sense Institute (CSI) report released just ahead of the three games held at State Farm Stadium in Glendale, the 2017 tournament brought in roughly $250-300 million for the local economy, and it remains to be seen how the 2024 numbers compare. While it has been some time since March Madness has wrapped up in the desert, the state is no stranger to high-profile sporting events – in just the last year and a half, Arizona has hosted the Super Bowl, the World Series, the NBA Playoffs, and the Waste Management Open.
At a public meeting held ahead of the Final Four, several Arizona officials shared their thoughts on the Arizona tourism industry and the government’s role in helping to carry out the tournament. At last week’s press conference, Arizona Governor Katie Hobbs was joined by Final Four Host Committee President and CEO Jay Parry, Glendale Assistant Police Chief Colby Brandt, and FBI Phoenix Assistant Special Agent in Charge Jarod Brown–among others.
Governor Katie Hobbs: “We will ensure that the participating teams and fans can travel safely between hotels, event sites and State Farm Stadium. Regional cooperation is key. And I want to thank all the agencies represented here today for their collaboration, ensuring the safety of tens of thousands of visiting fans and Arizona residents alike. I hope everyone is as excited as I am.”
2024 Men’s Final Four Host Committee President and CEO Jay Parry: “Four college fan bases are going to come to town this week for the event, and we’re excited to have that collegiate atmosphere, lots of students, college students and kids participating. Many of the planning efforts are similar because even with the case of public safety, … we’ve worked with many of those agencies around Super Bowl. You get to roll it forward and have all that continuity and benefit for the Men’s Final Four.”
Glendale Assistant Police Chief Colby Brandt: “When it comes to major events such as this, fortunately, we’ve had plenty of practice. We know how to do them right here in Glendale. There is no higher priority for us collectively as public safety in the state of Arizona than ensuring you’re safe while attending the games or attending the many fantastic events surrounding the Final Four this week.”
FBI Phoenix Assistant Special Agent in Charge Jarod Brown: “Obviously, we’re looking for intelligence or information of anything that could be a threat to anything that’s going on here in Phoenix. And so we work collaboratively with our partners across the country in the FBI to make sure if there is information we should know about, specifically here in Phoenix, that that’s communicated directly to our state and local partners.”
Other Relevant Headlines
Biggs, Gosar subpoenaed in Arizona attorney general inquiry of fake electors, report says (April 5, 2024) - “Attorney General Kris Mayes again said her investigation of the Republican electors who falsely claimed Donald Trump won Arizona in 2020 would wrap up ‘very soon’ as new details came to light about the broadening reach of the probe…The same day, news organization Politico reported that Mayes' investigation included two subpoenas to U.S. Reps. Andy Biggs and Paul Gosar, both Arizona Republicans.”
Supreme Court tosses latest complaint in Arizona voting machine case (April 7, 2024) - “Alleging Maricopa County lied, Kari Lake and Mark Finchem are making a last-ditch plea to the U.S. Supreme Court to consider their claim that voting machines are so inherently inaccurate that they should not be used in elections. But the justices won’t be hearing the latest they have to say about that.”
Tucson City Council will take up Israel-Hamas ceasefire. The vote is splitting Tucsonans (April 8, 2024) - “[Tucson City Council meetings have] become contentious in recent weeks as the scope has shifted from local issues to international conflict. The meetings now regularly feature residents weighing on the Israel-Hamas war, with some calling on their local leaders to pass a resolution calling for a ceasefire in Gaza. Months of organizing by local groups appear set to make an impact — the city council will address the issue of a ceasefire resolution at its April 9 meeting, weeks after the City of South Tucson became the first Arizona city to pass such a resolution.”
Maricopa County Recorder's Office wants to use artificial intelligence (April 8, 2024) - “The Maricopa County Recorder’s Office is exploring the use of artificial intelligence to help employees process millions of documents more efficiently. According to a request for proposals posted on the county’s website, the recorder’s office is seeking a contractor to ‘improve processes around document identification, data extraction, and comparing handwritten signature images with on-file signature images by way of artificial intelligence and machine learning’.”
Attorney General Mayes Statement on Planned Parenthood of AZ v. Mayes (April 9, 2024) - “The Arizona Court of Appeals decision, which the Supreme Court has struck down today, was well reasoned and aligned with how courts harmonize different legislation. Today's decision to reimpose a law from a time when Arizona wasn't a state, the Civil War was raging, and women couldn't even vote will go down in history as a stain on our state. This is far from the end of the debate on reproductive freedom, and I look forward to the people of Arizona having their say in the matter. And let me be completely clear, as long as I am Attorney General, no woman or doctor will be prosecuted under this draconian law in this state.”
This round-up was written by Jared (JJ) Cichoke. He currently works as a Policy Analyst after previously holding various roles with Senator Martha McSally (R-AZ) and the Senate Committee on Indian Affairs. A graduate of Vanderbilt University, he recently moved to Arizona after spending nearly his entire life in Portland, Oregon.