Deep Dive on the American Semiconductor Industry: What States Are Driving the Growth?

The United States has always been at the forefront of technological innovation, and the semiconductor industry is no exception. As a result of the growing demand for sophisticated chips and transistors, a new silicon wafer supplier is appearing every year nationwide, helping to expand this essential sector of the economy today.

In this environment, some states have emerged as a technological hub for the production of semiconductors.

Top States for Semiconductor Manufacturing

California

With 34 facilities, California leads the nation in semiconductor manufacturing. California has made innovation one of its many specialties since the 1950s. The first semiconductor facility in the state to open was Shockley Semiconductor Laboratory, which opened in 1955 and marked the beginning of the technology hub that would later be known as Silicon Valley.

Arizona

Six years ahead of California, in 1949, Arizona made one of its first semiconductor attempts. In that same year, Motorola Inc. opened a research lab in Phoenix that would eventually be used to manufacture transistors.

Since 2020, the state has secured over 40 semiconductor expansions, representing more than $102 billion in capital investment.

Texas

Texas is renowned for having some of the biggest semiconductor companies in the country and for being a business-friendly state. It is a cost-effective option for businesses because labor, utilities, and real estate are reasonably priced. Additionally, the state provides businesses with certain incentives and reduced taxes.

Find the Right Silicon Wafer Supplier for You

According to the US Semiconductor Ecosystem Map from the Semiconductor Industry Association (SIA), California, Arizona, and Texas are three states excelling in semiconductor manufacturing and R&D. The secret to their growth lies in their industry clusters, which allow companies to benefit from being close to each other and sharing knowledge, suppliers, and skilled labor.  

Additionally, Florida is another state to pay attention to as public and private investments promise growth in this area. If you’re looking for a local wafer manufacturer, contact Wafer World for more information!