Plans by state and local leadership to establish Arizona as a leader in semiconductor manufacturing have stalled due to a lack of skilled workers.
Taiwan Semiconductor Manufacturing Company (TSMC) announced last week that it will delay production until 2025: a full year after their initially planned launch. TSMC produces 90 percent of the world’s microchips, supplying major products like Apple’s iPhone, iPad, and Mac computers.
TSMC Chair Mark Liu indicated in last week’s second quarter earnings call that efforts on their end to gin up an adequate workforce couldn’t counter the limited talent pool in the country.
“We are encountering certain challenges, as there is an insufficient amount of skilled workers with those specialized expertise required for equipment installation in a semiconductor-grade facility,” said Liu. “While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025.”
Maricopa County Community Colleges (MCCC) partnered with Intel to launch a program last year to supplement the burgeoning semiconductor industry’s workforce, estimated to be around 3,000 workers between Intel and TSMC. Students who pass certification receive a $270 stipend to cover the tuition cost.
TSMC raised their investment in the state from $12 billion to $40 billion ahead of President Joe Biden’s visit to tour the Phoenix facility last year.
Biden’s TSMC appearance marked his first and only trip to the state during his entire presidency — even with the ongoing border crisis. Biden justified prioritization of a manufacturing facility over the border crisis by claiming the border wasn’t important.
Biden’s first and, so far, only interest in visiting Arizona may align with his consistent desire to prioritize business and personal interests over national interests (as reflected by his alleged involvement in the laptop debacle revealing corrupt foreign business dealings by his son, Hunter Biden). Biden said during his TSMC speech that he “owe[s] an awful lot” to TSMC because the wife of its founder, Morris Chang, worked his first Senate campaign.
NOW in Arizona: @POTUS said he "owes an awful lot" to Taiwan Semiconductor Manufacturing Company because founder Morris Chang's wife, Sophie, worked Biden's first Senate campaign. Perhaps that's why Biden told @pdoocy today that the border isn't important. Scratching backs! pic.twitter.com/wFFYncZIMV
Phoenix Mayor Kate Gallego also has ties to TSMC. Gallego’s former senior policy advisor and campaign donor, Laura Franco French, serves as TSMC’s director of state government relations. Franco French joined TSMC in 2021 immediately after departing Gallego’s office, where she’d served since Gallego became mayor in 2019.
Gallego’s TSMC connection may explain her apparent lack of concern with TSMC’s delay. When asked about the TSMC issue with obtaining skilled workers during an interview on Sunday, Gallego responded with a non-answer.
“We are very excited to be the future of semiconductors. It’s so important that we’re onshoring manufacturing of these essential devices in the United States and we’re going to take an all-hands-on deck approach to make sure it is successful,” said Gallego. “President Biden has picked Phoenix as one of the innovation job hubs and will be able to partner with the US Department of Commerce in particular, but across his administration to do training for our residents. We have a very successful project with our community college where people can get a six-week certificate in semiconductors that’s produced hundreds of graduates so far, but we know we have to turn it up so that we can deliver not just for Arizona but for the world.”
In addition to the shortage of skilled workers, TSMC’s development in Arizona may be delayed due to other concerns with health and environmental impact.
Perfluoroalkyl and polyfluoroalkyl substances (PFAS) — dubbed “forever chemicals” for their resistance to breaking down — are integral to microchip production. PFAS have been linked to a host of serious health issues concerning fertility, fetal development, bone variations, behavioral changes, accelerated puberty, high blood pressure, liver disease, cancer, lowered immunity, hormone disruption, thyroid disease, high cholesterol, and obesity. Chemical waste from factory production has led to PFAS contaminating water and, consequently, humans and the environment.
The Biden administration has progressively focused on PFAS with increasing pressure. Last June, the Environmental Protection Agency (EPA) issued four drinking water health advisories for PFAS. Last August, the EPA proposed designating two of the most widely used PFAS as hazardous substances. Last December, the EPA required facilities to report on all PFAS usage. In March, the EPA issued its first-ever proposal to regulate PFAS in drinking water.
The Biden administration has offered $3 billion in grants to states and territories to clean up PFAS in drinking water; it also launched an analytics tool for the public to track PFAS contamination.
3M announced in December that it would halt PFAs production by 2025, a move which set off alarm bells for TSMC and other chipmakers. The announcement came ahead of the company’s $10.5 to $12.5 billion settlement for drinking water contamination.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Fresh off of 14 years of influence from Republican governors and legislators, Arizona remains one of the top economic states in the nation.
This month, CNBC published its Top States for Business for 2023, showing that Arizona was ranked 14th among the 50 laboratories of democracy. Arizona was ranked 3rd in the Workforce category (16% of weight), 7th in Infrastructure (15.6%), 15th in Economy (14.4%), 35th in Life, Health & Inclusion (14%), 33rd in Cost of Doing Business (11.6%), 18th in Technological Innovation (10.8%), 13th in Business Friendliness (8.6%), 42nd in Education (5%), 17th in Access to Capital (2%), and 40th in Cost of Living (2%).
In summarizing why Arizona grabbed the 3rd ranking for workforce, CNBC wrote, “Educated workers are flocking to the Grand Canyon State, and a growing number of them are highly skilled as the state boosts its tech sector. With unemployment roughly in line with the national average, worker shortages are not as severe as they are in some other states. Arizona is a right-to-work state with a solid career education system, though worker training programs could use some improvement.”
The 2023 rank for Arizona’s workforce had improved from 7th (in 2022) to 3rd; economy from 22nd to 15th; life, health & inclusion from 50th to 35th; technology & innovation from 29th to 18th; access to capital from 41st to 17th. The overall ranking rose from 34th to 14th.
According to CNBC’s Economic Profile for Arizona, the GDP growth in quarter one of 2023 was 2.70%, the unemployment rate as of May 2023 was 3.40%, the top corporate tax rate was 4.90%, the top individual income tax rate was 2.5%, and the gasoline tax is 37.40 cents per gallon.
The state’s top-rated economic status was the result of years of policies and calculations made by its leaders – both in the executive and legislative branches. In his online portfolio of his eight years in office (theduceyyears.com), former Governor Doug Ducey touted the expansion and moves of several industry leaders in Arizona. Those leaders included Intel, which “announced a $20 billion expansion to create two new semiconductor fabrication facilities;” and Taiwan Semiconductor Manufacturing Company, which “will create over 1,600 new high-tech jobs and generate thousands of additional jobs in the state for suppliers and other companies within the semiconductor industry.”
The former governor also noted that “Arizona passed the largest income tax cut in the state’s history, making our flat tax the lowest in the nation at 2.5%.”
Soon after taking office, Democrat Governor Katie Hobbs retained the services of the President and CEO of the Arizona Commerce Authority (ACA), Sandra Watson, perhaps hoping to maintain the state’s successful business reputation at a critical juncture in its history. The Governor’s Office highlighted that “under Ms. Watson’s leadership, the ACA has worked with over 1,100 companies that have committed to creating more than 240,000 jobs and investing over $103 billion in capital in Arizona.” Watson was installed in her position under the Jan Brewer administration in 2012, and she continued in that role throughout Ducey’s tenure.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Americans celebrating the Fourth of July are paying more than they were two years ago.
According to the 2023 American Farm Bureau Federation (AFBF) marketbasket survey, American families might expect to pay $67.73 for a cookout on July Fourth. This amount is three percent lower than a year ago, but around fourteen percent higher than 2021 numbers.
AFBF Chief Economist Roger Cryan weighed in on the news, saying, “The slight downward direction in the cost of a cookout doesn’t counter the dramatic increases we’ve seen over the past few years. Families are still feeling the pinch of high inflation along with other factors keeping prices high. Don’t assume farmers come out as winners from higher prices at the grocery store either. They’re price takers, not price makers, whose share of the retail food dollar is just 14%. Farmers have to pay for fuel, fertilizer and other expenses, which have all gone up in cost.”
Zippy Duvall, the President of AFBF, also issued a statement, writing, “While the increased costs are difficult and have made it more challenging for some families to put food on the table, it’s important to remember that America still has one of the most affordable food supplies in the world, which is due in part to strong farm bill programs. As we all celebrate the holiday, we encourage members of Congress to consider the contributions of the farm bill to our security and independence by ensuring a safe and abundant food supply.”
AFBF shared multiple factors that might explain the increased prices for food: “Drought conditions have increased the cost of feed and reduced the number of available cattle for the summer grilling season, driving up beef prices; higher potato prices can be attributed to poor weather leading to a drop in production, and general inflation is driving up the price of processed foods like bread.”
According to the AFBF, data for the survey was collected “from 240 stores in every state and Puerto Rico.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
One of Arizona’s freshmen Republican representatives is pleased after his bill survived the Governor’s Office.
On Tuesday, Representative Michael Carbone announced that HB 2809, which he sponsored had been signed into law by Democrat Governor Katie Hobbs.
✅FOR IMMEDIATE RELEASE✅ State Representative @MichaelCarbone Leads on Critical Business Infrastructure Investment Bill
“Arizona is on the leading edge of advanced manufacturing – an industry that’s investing billions, and creating thousands of high-paying, skilled jobs for… pic.twitter.com/uO8qPi91Es
— Arizona House Republicans (@AZHouseGOP) June 27, 2023
According to Carbone, HB 2809 “helps communities build public improvements to attract manufacturing investment by doubling the lifetime cap of construction tax dollars that a city, town, or county can get back from the state.”
In a statement, Representative Carbone said, “Arizona is on the leading edge of advanced manufacturing – an industry that’s investing billions, and creating thousands of high-paying, skilled jobs for what I call a ‘new blue-collar workforce.’ HB 2809 makes it possible for the state to provide communities more help to build the critical business infrastructure improvements they’ll need to attract advanced manufacturing investment. Infrastructure serves as the backbone of a state, and I believe that broad based, industry neutral incentives which support public infrastructure are a proper role of government and will ensure that Arizona will continue to be a reliable partner. This was a great first bill to have signed into law, and it’s the kind of policy that I came to the legislature to advance to move Arizona forward.”
Earlier in June, the Arizona Chamber of Commerce and Industry supported the passage of this proposal through the state legislature, tweeting, “PASSED! The #AZLeg on a bipartisan vote just approved HB 2809, the business community’s priority bill of this legislative session. With this vote, Arizona is one step closer to solidifying our reputation as the No. 1 state for manufacturing growth. HB 2809 is a critical economic development tool that will improve local infrastructure & ensure AZ remains a attractive place for manufacturers to invest. We’re grateful to lawmakers – especially sponsor Michael Carbone – for supporting this bill & sending it to the governor’s desk.”
PASSED! ✔️ The #AZLeg on a bipartisan vote just approved HB2809, the business community’s priority bill of this legislative session. With this vote, Arizona is one step closer to solidifying our reputation as the No. 1 state for manufacturing growth. pic.twitter.com/9L63Abq3vn
In Carbone’s release, he explained, “State law provides that a city, town or county may be paid up to 80% of the cost of public infrastructure improvements for the benefit of a manufacturing facility and that the funds distributed are from tax revenues received from persons conducting business under the Prime Contracting Classification derived from contracts to construct buildings and associated improvements for the benefit of a manufacturing facility. HB 2809 raised the total amount paid to all cities, towns and counties that can be paid by the state, from $100 million to $200 million.”
Representatives from the City of Chandler, Intel Corporation, Queen Creek Chamber of Commerce, Taiwan Semiconductor Manufacturing Company, Greater Phoenix Leadership,
Southern Arizona Leadership Council, and the City of Phoenix endorsed the bill throughout the legislative process.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
An Arizona lawmaker is calling out Governor Katie Hobbs for rising gas prices.
On Friday, Senator Jake Hoffman issued a press release, which highlighted “disturbing details…over what Katie Hobbs knew about Arizona’s fuel supply, and the fallout of crippling gas prices from her inaction, after concerns were raised over a major shortage.”
FOR IMMEDIATE RELEASE: Katie Hobbs Ignored Warning of Critical Gas Shortage in Arizona Leading to Pain at the Pump for Drivers ⬇️ pic.twitter.com/L9pD9teawg
Hoffman’s release originated from reports that a letter had been sent to Hobbs in March by independent petroleum refiner HF Sinclair, warning the state’s chief executive “of a critical supply shortage in Arizona due to an unexpected equipment failure stopping the production of ‘Cleaner Burning Gasoline’ (CBG) required by the Biden Administration in Maricopa County, as well as parts of Pinal and Yavapai Counties.” Hoffman revealed that HF Sinclair had “asked Hobbs to seek a waiver on that requirement from the U.S. Environmental Protection Agency, but the Hobbs Administration denied that request, baselessly claiming the EPA wouldn’t approve it.”
The state senator put Governor Hobbs on blast for this inaction, asserting that her constituents would pay a literal price for this decision: “Katie Hobbs’ incompetence as Arizona’s Governor continues to take center stage, and hardworking Arizonans are paying the price for it. The average price for a gallon of gas right now in Maricopa County is a full $1 higher than the national average. This is extra money that could help with groceries, medications and other necessities many of our taxpayers are having a difficult time affording because of the Biden Administration’s reckless policies leading to historic inflation. Hobbs had an opportunity to do the right thing by requesting this waiver to allow prices at the pump to drop, but she instead chose to selfishly play political games with the livelihoods of our citizens by refusing to back down from her woke ‘green’ agenda to appeal to her far-Left base. Katie, this is not California. In Arizona, we put families first.”
Senator Hoffman’s release shared part of the letter from HF Sinclair, where the refiner argued that Hobbs would be within her right to seek the waiver from the EPA, writing, “Pursuant to 42 U.S.C. § 7545(c)(4)(C)(ii), EPA may temporarily waive a control or prohibition respecting the use of a fuel when extreme and unusual fuel supply circumstances prevent the distribution of an adequate supply to consumers. EPA may grant such a waiver where such circumstances are the result of a natural disaster, Act of God, refinery equipment failure, or another event that could not reasonably have been foreseen or prevented, and where doing so would be in the public interest (e.g., when a waiver is necessary to meet projected temporary shortfalls in fuel supply in a state or region). Such circumstances presently exist in Arizona.”
The Hobbs’ Administration may not have been willing to pursue this waiver to help Arizonans at the gas pumps – something that can’t be said about the Biden Administration, which had another opportunity to lower fuel prices earlier this year. Last month, the EPA issued “an emergency fuel waiver to allow E15 gasoline – gasoline blended with 15% ethanol – to be sold during the summer driving season.” According to the EPA, “the waiver will help protect Americans from fuel supply crises by reducing our reliance on imported fossil fuels, building U.S. energy independence, and supporting American agriculture and manufacturing.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
On Tuesday, Rep. Andy Biggs (R-AZ-05) and the House Freedom Caucus spoke in opposition to Congress’ plan to raise the debt ceiling: the Fiscal Responsibility Act (FRA).
Under the current plan, the debt ceiling would increase from $31.5 trillion to $36 trillion by 2025, with no cap in place. Without a raise in the debt limit by June 5, the government will be in default.
“Instead of estimating the actual debt ceiling that will be imposed by that date, January 1, 2025, they simply say that will be the date, there will be an unlimited cap,” said Biggs. “There won’t be a cap for 19 months of the Biden administration, and the Biden administration is probably the most profligate we’ve seen.”
Honored to stand with my colleagues in the @freedomcaucus today.
The national debt current growth rate is projected at over $4 trillion in new debt. Biggs forecasted an increase to $5 trillion by 2025.
Biggs claimed that the version of the FRA agreed to under House Speaker Kevin McCarthy (R-CA-20) would only delay, not prevent the IRS from hiring 87,000 new agents costing $71 billion. Biggs said these agents would not only be weaponized against taxpayers, but presented a significant financial burden.
Biggs further claimed that the FRA establishes Green New Deal tax credits and subsidies for the wealthy. He further criticized the PAYGO program, which would require government bureaucrats to justify how they would afford their expenditures; Biggs noted that a similar program already exists in Congress, yet that program hasn’t slowed spending. He added that Congress also already waives PAYGO provisions.
“How come it is Republican leaders always tell us ‘next year we’ll fight hard’?” asked Biggs.
Rep. Raúl Grijalva (D-AZ-07) also opposed the FRA, but for different reasons. Grijalva expressed opposition to the FRA in his capacity as Democratic ranking member of the Natural Resources Committee. He argued that the FRA would jeopardize the National Environmental Policy Act (NEPA).
Watch the full press conference here:
Rep. Thomas Massie (R-KY-04) criticized the Senate for attempting to corner the House into approving their version of the funding bill.
“[The Senate is] sending us a giant omnibus bill the day before the government funding runs out, and saying, ‘Pass the Senate version or the House will be responsible for the shutdown,” said Massie.
House Republican Conference leadership backs the FRA. The chairwoman, Rep. Elise Stefanik (R-NY-21) claimed the FRA would stop runaway inflationary spending, rescind executive overreach, and improve everyday Americans’ financial status.
With the Fiscal Responsibility Act, House Republicans will:
1. Stop out-of-control inflationary spending. 2. Rein in executive overreach. 3. Lift Americans out of poverty.
McCarthy also characterized the FRA as a win, adding that their version eliminates COVID-19 spending, prevents $5 trillion in new tax proposals, and enacts more work requirements for welfare recipients.
Treasury Secretary Janet Yellen warned Congress in January that the U.S. had reached its statutory debt limit and would run out of funding sometime in early June. In a follow-up letter last week, Yellen specified the expiration date as June 5.
She disclosed that her department would fulfill over $130 billion of scheduled payments in the first two days of June, including payments to veterans as well as Social Security and Medicare recipients. Yellen added that scheduled payouts would leave the Treasury unable to satisfy all its fiscal obligations.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
