Phoenix, December 10, 2025
Steven G. Zylstra, CEO of the Arizona Technology Council, defends Arizona’s semiconductor industry following criticisms raised in a New York Times article. The article highlighted concerns about labor practices and the environmental impact of chip manufacturing. Zylstra emphasized the state’s commitment to sustainable practices and significant investments that have led to job creation and positioned Arizona as a leader in semiconductor manufacturing.
Phoenix, Arizona – Arizona Tech Council CEO Defends State’s Semiconductor Industry Amid Criticism
In response to recent critiques of Arizona’s semiconductor industry, Steven G. Zylstra, President and CEO of the Arizona Technology Council, has strongly defended the state’s manufacturing legacy and workforce. His remarks come after a New York Times article questioned the industry’s practices and impact.
Arizona’s Semiconductor Industry Under Scrutiny
The New York Times article highlighted concerns regarding labor practices and environmental impacts associated with Arizona’s semiconductor manufacturing. Specific issues raised included labor shortages, regulatory challenges, and the environmental implications of water usage in chip production.
Arizona Tech Council’s Response
The Arizona Technology Council addressed these concerns by emphasizing the state’s commitment to sustainable practices and the significant investments made to bolster the semiconductor sector. Arizona has attracted over $205 billion in semiconductor investments since 2020, leading to the creation of more than 24,000 jobs in the industry. These efforts have positioned Arizona as a leader in semiconductor manufacturing, contributing to the nation’s technological advancement and economic growth.
Background on Arizona’s Semiconductor Industry
Arizona has become a hub for semiconductor manufacturing, with major companies like Taiwan Semiconductor Manufacturing Company (TSMC) and Intel establishing significant operations in the state. TSMC’s investment of $165 billion to build six semiconductor fabrication plants, two advanced packaging facilities, and a research and development center in Phoenix is the largest foreign direct investment in U.S. history. This expansion supports the growing demand for advanced chips, particularly in sectors like artificial intelligence and data centers.
Furthermore, Amkor Technology has invested approximately $2.5 billion in a state-of-the-art manufacturing campus in Peoria, Arizona, further strengthening the state’s position in the semiconductor supply chain. These developments underscore Arizona’s strategic importance in the global semiconductor industry and its role in enhancing domestic manufacturing capabilities.
Conclusion
While recent critiques have raised valid concerns, the Arizona Technology Council and industry leaders continue to advocate for the state’s semiconductor sector, highlighting its economic contributions and ongoing efforts to address challenges through innovation and responsible practices.
Frequently Asked Questions (FAQ)
What recent criticisms have been made about Arizona’s semiconductor industry?
A New York Times article raised concerns about labor practices, regulatory challenges, and environmental impacts, particularly regarding water usage in chip production.
How has the Arizona Technology Council responded to these criticisms?
Steven G. Zylstra, CEO of the Arizona Technology Council, defended the state’s semiconductor industry by highlighting significant investments and job creation, emphasizing Arizona’s commitment to sustainable practices and its role in advancing the nation’s technological capabilities.
What are some major investments in Arizona’s semiconductor sector?
TSMC has invested $165 billion to build six semiconductor fabrication plants, two advanced packaging facilities, and a research and development center in Phoenix. Additionally, Amkor Technology has invested approximately $2.5 billion in a state-of-the-art manufacturing campus in Peoria, Arizona.
How has Arizona’s semiconductor industry impacted the state’s economy?
The semiconductor industry has significantly contributed to Arizona’s economy by attracting over $205 billion in investments since 2020 and creating more than 24,000 jobs, positioning the state as a leader in semiconductor manufacturing and enhancing its technological infrastructure.
What challenges does Arizona’s semiconductor industry face?
The industry faces challenges such as labor shortages, regulatory hurdles, and environmental concerns, particularly related to water usage in chip production. Addressing these issues requires ongoing innovation and responsible practices to ensure sustainable growth.
Key Features of Arizona’s Semiconductor Industry
| Feature | Description |
|---|---|
| Major Investments | TSMC’s $165 billion investment and Amkor Technology’s $2.5 billion investment in Arizona’s semiconductor sector. |
| Job Creation | Over 24,000 jobs created in the semiconductor industry in Arizona since 2020. |
| Economic Impact | Over $205 billion in semiconductor investments attracted to Arizona since 2020. |
| Environmental Considerations | Concerns regarding water usage in chip production and efforts to implement sustainable practices. |
| Industry Challenges | Labor shortages, regulatory challenges, and environmental impacts affecting the semiconductor sector. |
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Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
