Part of the “Building America’s Industrial Base” Series
Spencer Lau, Annika Jonas-Day, and Vivian Yu
Arizona and Upstate New York are at the forefront of U.S. semiconductor manufacturing growth, supported by some of the country’s largest investments under the CHIPS and Science Act. Their experiences show that attracting anchor investment is only the first step. Long-term impact will depend on whether regional suppliers can build the capabilities, workforce, and capital needed to compete.
Part of Next Street’s “Building America’s Industrial Base” research series, supported by JPMorganChase, this case study compares how the two regions are building supplier ecosystems from different starting points and what other regions can learn from their experience.
Key takeaways
Supplier development must reflect local market conditions. Arizona is expanding an established semiconductor manufacturing ecosystem, while Upstate New York is preparing for Micron’s planned production. In both, supplier investment depends on sustained demand and facility ramp-up.
Anchor manufacturers and how they buy shape supplier opportunity. Different purchasing models, qualification requirements, and supplier networks determine where and when local businesses can participate.
Near-term opportunities differ from deeper supply chain participation. Construction, logistics, and facilities services provide earlier entry points amid fab buildout, while materials, equipment, and production inputs require greater technical capability, certification, and capital.
Strong ecosystems connect business support, workforce, capital, and procurement. Effective, coordinated systems help firms move from capability building to qualification, contracts, and sustained growth.
Supplier ecosystems are becoming a core dimension of economic competitiveness. Success will increasingly depend not only on attracting investment, but on translating it into supplier growth, contract awards, and follow-on investment.
A wave of semiconductor investment is reshaping Arizona and Upstate New York. Upstate New York is building around Micron’s planned investment, while Arizona’s growth is being driven by multiple major manufacturers, including TSMC, Intel, and Amkor.
The comparison highlights a central finding: anchor investment creates the opportunity, but supplier ecosystems determine how much of that opportunity takes root locally.
Read the full case study
Explore the full analysis of semiconductor investment and supplier ecosystems in Arizona and Upstate New York, including details on industry landscapes, workforce development, capital access, procurement strategies, and lessons for strengthening domestic supply chains.
