From Investment to Impact: Building Semiconductor Ecosystems in Arizona and Upstate New York

The Next Street Institute convened leaders from Arizona and Upstate New York to discuss how two regions at the center of U.S. semiconductor growth are translating major investment into opportunities for suppliers, workers, and communities.

Building on the recent report “Building Semiconductor Ecosystems in Arizona and Upstate New York” from the Next Street Institute, the discussion examined two ecosystems at different stages of development—and what their experiences can teach other regions pursuing industrial growth.

Key Takeaways

• Anchor investment is only the starting point. Investments from multinational firms create new demand across the semiconductor supply chain, but it does not automatically translate into opportunities for local businesses. Suppliers need visibility into opportunities, timing, buyer requirements, and the capabilities needed to compete.

• Supplier strategies must reflect regional starting points. Arizona is building on an established semiconductor base, while Upstate New York is organizing a more coordinated regional system around new investment. Effective regional approaches depend on market maturity, existing assets, and the structure of buyer demand.

• Supplier programs work best when tied to real procurement. Panelists emphasized that businesses need help identifying where they fit in the value chain and connecting to specific purchasing opportunities. Buyer requirements, qualification standards, and contracting timelines ultimately shape the market.

• Entering the supply chain often requires investment before revenue. Suppliers often need to fund certifications, equipment, workforce, and facilities before securing a first purchase order. Capital, workforce support, shared infrastructure, and buyer connections can help address such needs.

• Measure success by commercial outcomes. Beyond businesses served, stronger measures include supplier qualifications, first and repeat purchase orders, revenue growth, workforce advancement, and whether economic benefits extend across the region.

The broader lesson: turning semiconductor investment into lasting regional impact requires deliberate ecosystem building—connecting suppliers to demand, helping firms manage the cost of entry, and measuring whether businesses and workers ultimately capture new opportunity.

A special thank you to our participants:

• Pearl Chang Esau, CEO & Founder, TechSmart 

• Martin Perez, Special Projects, Advanced Manufacturing, City of Phoenix  

• Honora Spillane, Senior VP of Inclusive Growth, CenterState CEO  

• Joseph Stefko, President and CEO, OneROC 

• Spencer Lau, Head of Next Street Institute and Senior Director, Next Street (Moderator)