Log in

VALLEY BUSINESS

Semiconductor support firm to expand Chandler facility

Posted

Applied Materials, Inc. has announced its expansion plans include its Chandler facility — though it isn’t clear yet, exactly to what extent.

The semiconductor industry support manufacturer announced Aug. 6 that it’s “working with Apple and Texas Instruments to bolster the semiconductor manufacturing supply chain in the U.S.”

Applied is supporting Apple’s partnership with TI, announcing that in addition to creating chipmaking equipment at its Austin, Texas facilities, it plans to invest more than $200 million “in Arizona to establish a state-of-the-art facility for manufacturing critical components for semiconductor equipment.”

In a news release, Applied states its Austin major production facilities in Austin are accompanied by similar ones in Massachusetts, Montana, and “a new site under development in Arizona.”

The company said it plans to invest more than $200 million to create a new advanced manufacturing facility in Chandler to produce semiconductor equipment components and parts. The facility could support the creation of “potentially 200 additional manufacturing, R&D and services jobs in the semiconductor field over a five-year period.”

In Arizona, Applied states, the company is “already a key part of the state’s high-tech ecosystem, collaborating closely with customers, partners and universities.”

“Applied Materials’ new advanced manufacturing facility will further bolster Arizona’s robust semiconductor ecosystem and strengthen U.S. supply chain resiliency,” said Sandra Watson, president and CEO of the Arizona Commerce Authority, in the release. “Across important areas such as equipment, R&D, and workforce training, Applied has been a tremendous industry partner, and we’re grateful for their continued leadership and commitment to Arizona.”

The company states that the technology it creates is essential to advancing AI and accelerating the commercialization of next-generation chips.

No one from Applied Materials could be reached directly to answer questions or comment for this story.

The city of Chandler’s Economic Development team released a statement saying most of what it knows about Applied’s plans is what was announced in their press release and what was previously included in a Chandler City Council memo for a sustainable water service agreement.

In that memo, the team states, Applied generated $27 billion in revenue in fiscal year 2024.

The memo stated Applied was in negotiations to purchase has purchased a 180,000-square foot industrial building at 2377 South Arizona Ave., between Germann and Queen Creek roads.

“The company plans to make a significant capital investment in building improvements and equipment purchases to turn it into an advanced manufacturing facility,” the memo states. “Multiple business units will operate in the facility to serve the region’s growing semiconductor industry. The activities within the building will include advanced manufacturing, research and development, and the service of semiconductor equipment and parts."

Regarding their role in the tech landscape, the Chandler Econ team states, Applied is “a critical part of the chip manufacturing supply chain. For example, they are consistently recognized by Intel and TSMC in their annual supplier awards.”

The teams states that locally, the existing Chandler office has historically supported Intel by providing installation and maintenance of Applied equipment used in Intel’s fabs.

In addition to Applied’s plans for Chandler, the company’s Materials-to-Fab Center partnership with Arizona State University is a recent and noteworthy investment that strengthens the East Valley’s regional semiconductor industry,, the team stated.

We invite our readers to submit their civil comments on this topic. Email AZOpinions@iniusa.org.   Email Jason W. Brooks at jbrooks@iniusa.org.

Valley business, local business, semiconductors, semiconductor support, tech jobs, technology employment

Share with others


Have an opinion on this story? Click here to send a letter to our editors.

Comments

No comments on this item Please log in to comment by clicking here