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Arizona and Saxony Seek Chip Industry Ties as Factory Capacity Grows

The regions connected companies and researchers around SEMICON West. Saxony's announcement identified no joint project, funding commitment or timetable.

Updated 2 min read
Attendees walk among semiconductor equipment displays at a trade fair in San Francisco. (AI-generated image / EconoTimes)
Attendees walk among semiconductor equipment displays at a trade fair in San Francisco. (AI-generated image / EconoTimes)

Arizona and Saxony are seeking closer ties between their semiconductor industries as factory expansion raises demand for suppliers and skilled workers, Saxony Trade & Invest Corp. (WFS) said Oct. 19.

According to WFS, executives and representatives of research and other institutions met at a Transatlantic Executive Dinner on the eve of SEMICON West in San Francisco. WFS and the Arizona Commerce Authority (ACA) also used the Oct. 13-15 trade fair to connect companies and institutions from the two regions. The WFS announcement did not identify a joint project, funding commitment or timetable.

The potential gains include access to customers and partners across the Atlantic. Saxony Trade & Invest Corp. CEO Thomas Horn said stronger ties could help Saxon companies enter the U.S. semiconductor market and give Arizona firms a route into Saxony's microelectronics industry. As production grows, he said, suppliers, research, workers and infrastructure must keep pace.

ACA's online semiconductor profile puts Arizona's capital investment since 2020 at more than $319 billion across more than 70 expansions. The profile does not give an update date; an ACA announcement in July put the investment total at more than $314 billion.

In Saxony, Infineon opened its €5 billion Smart Power Fab in Dresden in July. The company said the factory would create 1,000 direct jobs and double its manufacturing capacity at the site. GlobalFoundries is investing €1.1 billion in its Dresden expansion and expects site capacity to rise above 1 million 300-millimeter wafers annually by the end of 2028.

A Dresden joint venture announced in 2023 by Taiwan Semiconductor Manufacturing Company Limited, Bosch, Infineon and NXP projected more than €10 billion in total investment. Its original plan targeted production by the end of 2027.

Arizona Commerce Authority President and CEO Sandra Watson said the regions could build closer connections between businesses and researchers while developing their workforces. WFS also pointed to earlier discussions at Silicon Saxony Days in June.

Industry association SEMI has scheduled the next SEMICON West for March 30-April 1, 2027, in Phoenix.

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