Arizona’s Leaders Are Asleep While the Semiconductor Industry Burns | Arizona Capitol Times
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Arizona’s Leaders Are Asleep While the Semiconductor Industry Burns | Arizona Capitol Times

Leslie Addison

Arizona’s elected officials are either asleep at the wheel or willfully ignoring a looming disaster.

On March 3, 2025, President Trump and TSMC announced a $100 billion expansion in Arizona, touting new fabrication plants and thousands of jobs. The next day, March 4, 2025, Trump stood before Congress and declared that the CHIPS Act is a “horrible, horrible thing” that should be repealed.

If CHIPS funding is killed, Arizona’s semiconductor industry could collapse. Yet our Governor, Legislature and federal representatives are silent. Every one of them should be on the phone right now demanding an answer: Will TSMC’s federal subsidies and loans disappear?

Arizona’s bet on TSMC could backfire

TSMC’s Arizona expansion was not a private-sector miracle — it was a deal funded by taxpayer money.

  • The CHIPS Act awarded TSMC $6.6 billion in subsidies and $5 billion in loans to set up shop in Phoenix.
  • Arizona provided millions in state and local incentives — tax breaks, infrastructure funding and workforce development, yet the taxpayers have no clue what this is costing us.
  • TSMC’s first plant is operational, producing 10,000 wafers per month, ramping up to 24,000 by late 2025 — but only if the funding remains intact.

If CHIPS is repealed, what happens? Does Arizona get stuck with an empty factory? Does TSMC scale back or pull out? Where is the contingency plan? There isn’t one as far as I can see.

Where Are the Jobs? Where Are the Workers?

Arizona was promised thousands of high-paying jobs, but TSMC imported 1,500 foreign workers from Taiwan to fill critical, high-skill positions, while many of the lower-level, lower-paying technical and support roles were given to Arizona workers.

Why? Because Arizona wasn’t ready.

  • Yes, ASU, Maricopa Community Colleges, and other schools have semiconductor programs, but they weren’t scaled to meet demand before this deal was inked. Other states, like Texas, have semiconductor training programs that are ahead of Arizona’s.
  • If our workforce had been properly trained, TSMC wouldn’t have had to import talent.
  • TSMC’s hiring decisions prove the point: If they could have staffed this plant with Arizona workers, they would have.
  • This is the direct result of years of short-sighted policy.
  • Arizona lawmakers prioritized tax incentives over workforce development, and now Arizona workers are locked out of the very jobs they were promised.

We had years to prepare for this industry boom, but instead of investing in our workforce, lawmakers let it slip through their fingers.

Tariffs, immigration and construction chaos

Arizona’s own policies are making this situation even worse.

  • Lawmakers backed immigration crackdowns that have fueled construction and supply chain labor shortages.
  • Tariffs on building materials and high-tech equipment have increased costs for this project.
  • Auto manufacturers have lobbied Washington for tariff relief. Has Arizona?

Why aren’t Arizona officials fighting for exemptions that would keep construction on track and prevent ballooning costs?

If this plant fails or scales back, Arizona taxpayers will be left paying for infrastructure that no longer benefits them.

If CHIPS Is repealed, Arizona gets stuck with the bill

Arizona’s leadership sold this project as an economic game-changer, but without CHIPS funding, here’s what we’re facing:

  • No CHIPS Act = No Subsidies — TSMC could cut back or cancel future expansion.
  • Arizona has already spent millions — If TSMC leaves, taxpayers get nothing.
  • The workforce isn’t ready — Arizona will continue to import skilled labor while local workers are left behind.
  • Tariffs and immigration policies are strangling the industry —- But Arizona’s leaders aren’t fighting for relief.

Arizona’s leaders should be screaming about this — not me.

Arizona’s leaders must act immediately

  1. Demand federal guarantees that CHIPS funding will not be revoked.
  2. Expose the full financial commitments Arizona has already made to TSMC.
  3. Fix the semiconductor workforce pipeline now — not later.
  4. Push for tariff relief and immigration policies that protect Arizona’s economy.

This isn’t about partisan politics. This is about Arizona’s economic survival. If lawmakers don’t act now, the semiconductor industry — one they paid heavily to secure — could become the biggest financial disaster in state history.

Leslie Addison is a writer, researcher and political analyst dedicated to educating citizens on government accountability, constitutional integrity and state sovereignty. She is the founder of Citizens Voice Network, a nationwide nonprofit focused on civic engagement and policy reform and writes extensively on these topics through her Substack publication, CitizensVoiceNetworkCVN. Based in Phoenix, Arizona, she advocates for policies that strengthen state independence and public well-being.

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