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Released June 04, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Arizona is seeing a wave of high-tech projects within its borders, adding several billions of dollars of construction activity and making the state third in the nation for the value of its under-construction industrial projects after Texas and California. Industrial Info is tracking more than $71 billion worth of projects under construction in Arizona, with semiconductor fabrication facilities accounting for more than two-thirds of this amount.
Demand for semiconductors has been escalating over recent years with the continued rise in devices that use them, such as laptops and mobile telephones, as well as the automotive industry. The rising electric vehicle (EV) segment of the automotive industry requires even more chips per vehicle than that of standard vehicles. Supply-chain disruptions that occurred in the U.S. during the earliest days of the COVID-19 pandemic helped lead to CHIPS and Science Act of 2022, which provides tax incentives to semiconductor companies to establish manufacturing sites in the U.S. Companies such as chip giant Intel Corporation (NASDAQ:INTC) (Santa Clara, California) were quick to respond to the act, and Arizona is a prime destination for this new construction.
Intel has an existing campus in Chandler, Arizona, on the southeastern outskirts of Phoenix, that includes four manufacturing buildings. In early 2022, the company launched construction of two more fabrication facilities at the site, with a combined area of 670,000 square feet. Design-build firm Hoffman Construction Company (Portland, Oregon) is expected to wrap up construction of the estimated $30 billion project toward the end of this year, putting Intel on track to produce the most up-to-date chips for devices such as televisions, PCs and automobiles fairly soon. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing by the project report.
But Intel isn't the only semiconductor manufacturer expanding its reach in Arizona. Global leader Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (Hsinchu, Tawain), with funding from the CHIPs and Science Act and other sources, in late 2022 launched Phase II construction of its campus in Phoenix. The company is constructing a 2.88 million-square-foot second fabrication plant on the 3,500-acre site. The $12 billion plant is expected to begin commercial operations in 2027. Subscribers can click here to learn more.
Not only do EVs use more semiconductors, but they obviously employ batteries, which have come to represent a lucrative market for battery manufacturers. A company that is investing a sizable share in battery plants not only in Arizona but in other U.S. locations is South Korea's LG Corporation (Seoul), which is investing $5.5 billion at a site in Queen Creek, on the Phoenix outskirts. LG actually is investing in two plants at the site that will manufacture different batteries. The larger investment will include more than 935,000 square feet of manufacturing space along with additional area for product storage, hazardous waste storage, administrative space and utility buildings. This plant will manufacture the Series-46 cylindrical batteries used by Tesla Incorporated (NASDAQ:TSLA) (Austin, Texas). The plant is expected to begin production next year when it will begin ramping up to its design capacity of 36 gigawatt-hours (GWh) of batteries per year.
Nearby on the 650-acre site, LG is constructing a 1.4 million-square-foot second facility that will manufacture a lithium-iron-phosphate pouch-type battery that will be used in Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) vehicles. This plant is expected to begin construction in 2026 and will produce approximately 17 GWh of batteries per year. Subscribers can learn more by viewing the related project reports.
Arizona is known for its sunshine, so it's no wonder that solar power developers also are flocking to the state. Among the state's largest solar power projects is Longroad Energy Holdings LLC's Sun Streams 4 energy center, part of the company's larger Sun Streams complex in Maricopa County. Sun Streams 4 will use First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) photovoltaic modules to provide 377 megawatts (MW) of emissions-free power that will be purchased by utility Arizona Public Service (Phoenix). The site also will include 300 MW of battery energy storage capacity for times of high demand or when the sun isn't shining. The facility is expected to enter commercial operation in 2025. Subscribers to Industrial Info's Power Project Database can learn more by viewing the reports on the solar generation and energy storage portions of the project.
Data centers also represent another important aspect of Arizona's high-tech economy, with the largest such project coming under the auspices of Google parent company Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California), which is underway with the first phase of a planned three-phase project in Mesa. Phase I, which kicked off last summer, includes construction of a 288,000-square-foot data center building with two server halls and equipment that will expand Alphabet's footprint in the U.S. southwest. Phase I is expected to begin operations in the summer of 2025. Subscribers can learn more by viewing the project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Demand for semiconductors has been escalating over recent years with the continued rise in devices that use them, such as laptops and mobile telephones, as well as the automotive industry. The rising electric vehicle (EV) segment of the automotive industry requires even more chips per vehicle than that of standard vehicles. Supply-chain disruptions that occurred in the U.S. during the earliest days of the COVID-19 pandemic helped lead to CHIPS and Science Act of 2022, which provides tax incentives to semiconductor companies to establish manufacturing sites in the U.S. Companies such as chip giant Intel Corporation (NASDAQ:INTC) (Santa Clara, California) were quick to respond to the act, and Arizona is a prime destination for this new construction.
Intel has an existing campus in Chandler, Arizona, on the southeastern outskirts of Phoenix, that includes four manufacturing buildings. In early 2022, the company launched construction of two more fabrication facilities at the site, with a combined area of 670,000 square feet. Design-build firm Hoffman Construction Company (Portland, Oregon) is expected to wrap up construction of the estimated $30 billion project toward the end of this year, putting Intel on track to produce the most up-to-date chips for devices such as televisions, PCs and automobiles fairly soon. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing by the project report.
But Intel isn't the only semiconductor manufacturer expanding its reach in Arizona. Global leader Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (Hsinchu, Tawain), with funding from the CHIPs and Science Act and other sources, in late 2022 launched Phase II construction of its campus in Phoenix. The company is constructing a 2.88 million-square-foot second fabrication plant on the 3,500-acre site. The $12 billion plant is expected to begin commercial operations in 2027. Subscribers can click here to learn more.
Not only do EVs use more semiconductors, but they obviously employ batteries, which have come to represent a lucrative market for battery manufacturers. A company that is investing a sizable share in battery plants not only in Arizona but in other U.S. locations is South Korea's LG Corporation (Seoul), which is investing $5.5 billion at a site in Queen Creek, on the Phoenix outskirts. LG actually is investing in two plants at the site that will manufacture different batteries. The larger investment will include more than 935,000 square feet of manufacturing space along with additional area for product storage, hazardous waste storage, administrative space and utility buildings. This plant will manufacture the Series-46 cylindrical batteries used by Tesla Incorporated (NASDAQ:TSLA) (Austin, Texas). The plant is expected to begin production next year when it will begin ramping up to its design capacity of 36 gigawatt-hours (GWh) of batteries per year.
Nearby on the 650-acre site, LG is constructing a 1.4 million-square-foot second facility that will manufacture a lithium-iron-phosphate pouch-type battery that will be used in Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) vehicles. This plant is expected to begin construction in 2026 and will produce approximately 17 GWh of batteries per year. Subscribers can learn more by viewing the related project reports.
Arizona is known for its sunshine, so it's no wonder that solar power developers also are flocking to the state. Among the state's largest solar power projects is Longroad Energy Holdings LLC's Sun Streams 4 energy center, part of the company's larger Sun Streams complex in Maricopa County. Sun Streams 4 will use First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) photovoltaic modules to provide 377 megawatts (MW) of emissions-free power that will be purchased by utility Arizona Public Service (Phoenix). The site also will include 300 MW of battery energy storage capacity for times of high demand or when the sun isn't shining. The facility is expected to enter commercial operation in 2025. Subscribers to Industrial Info's Power Project Database can learn more by viewing the reports on the solar generation and energy storage portions of the project.
Data centers also represent another important aspect of Arizona's high-tech economy, with the largest such project coming under the auspices of Google parent company Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California), which is underway with the first phase of a planned three-phase project in Mesa. Phase I, which kicked off last summer, includes construction of a 288,000-square-foot data center building with two server halls and equipment that will expand Alphabet's footprint in the U.S. southwest. Phase I is expected to begin operations in the summer of 2025. Subscribers can learn more by viewing the project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
