September 20, 2023

Gallego Announces Southwest Microchip Manufacturing Hub Led by Arizona State University Will Receive $39.8 Million

WASHINGTON, DC – Today, Rep. Ruben Gallego (AZ-03) announced that Arizona State University will receive $39.8 million as part of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act to create the Southwest Advanced Prototyping (SWAP) Hub.

“Arizona has consistently been a national leader in semiconductor development, and this funding reflects that,” said Rep. Gallego. “I was proud to help shape the CHIPS Act in the House, and these critical investments will help move us away from our dependence on foreign semiconductor supply chains, protect our national security interests, and boost our economy.”

This investment is part of the Department of Defense’s (DOD) Microelectronics Commons program, which is focused on addressing a critical gap in U.S. semiconductor manufacturing and innovation by creating direct pathways for U.S.-based microelectronics researchers and designers to get their innovations to market, or from “lab to fab.”

“This is the first major national security-oriented research and development laboratory ever built in the state of Arizona, and Arizona State University is extremely honored to play a key role in making this happen,” said ASU President Michael Crow.

The DOD, through its Microelectronics Commons program, has announced it will allocate a total of $238 million as its first official investment as part of the CHIPS and Science Act.

This Act, which became law last year thanks to the leadership of Senator Mark Kelly (D-AZ) and other Senate Democrats provides $52.7 billion for semiconductor research, development, manufacturing, and workforce development. Arizona is currently ranked fourth in semiconductor manufacturing.

Along with this major investment by the DOD, Arizona has seen TSMC invest a total of $40 billion toward their Phoenix manufacturing plant. Arizona is also expected to see significant funding from the Act with companies like Intel, Microchip, and NXP over the coming years.

Click here to read the DOD’s full announcement.

Click here for more information about the CHIPS and Science Act.