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While the West and Southwest remain prime locations for manufacturing and tech companies, the semiconductor industry is growing rapidly in several states. Chip manufacturers are investing billions in Arizona, Texas and Oregon. Meanwhile, Samsung’s growing project in Austin now ranks as one of the largest economic development deals in U.S. history.
1. Texas*
Samsung Doubles Down in Austin
Everything is big in Texas, and Samsung is going all-in on Austin to develop one of the world’s largest semiconductor manufacturing campuses. In April 2024, the Korean company announced it is making a $45 billion investment in the region for a second fabrication plant, an advanced packaging facility and a research and development center. The U.S. Department of Commerce is providing $6.4 billion in funding to Samsung via the CHIPS and Science Act. The project is expected to create more than 17,000 construction jobs at the peak of development and approximately 5,000 permanent manufacturing jobs. It is one of the largest economic development deals in U.S. history by dollar and investment amount. Samsung, which has operated in Austin since 1996, launched its 5-Star Workforce Development plan in 2023 with significant contributions to local universities and colleges. “Samsung has already proven itself to be an amazing community partner,” said Tia Rae Stone, CEO of the Greater Taylor Chamber of Commerce, in a press release. “The facility isn’t even up and running yet, and we have already felt a positive impact at our local nonprofit organizations, additions to our city and school budgets and the personal friendship of many of their staff. We are looking forward to many years of growing prosperity for our community thanks to Samsung’s investment.”
*State’s rank in the 2024 Chief Executive Best & Worst States for Business
4. Arizona
Grand Growth In The Grand Canyon State
Arizona’s economy is forecasted to demonstrate strong growth in 2025. An impressive number of mid-market companies are setting up headquarters and hubs in the Phoenix metro area, while manufacturers have set up new operations. The Arizona Commerce Authority noted that in the 12-month period ending on June 30, 2024, it worked with companies to invest more than $50 billion in projects in the state, resulting in over 24,000 new jobs. One notable bright spot is the growing semiconductor industry fueling thousands of jobs and bringing many multibillion-dollar deals to the state. TSMC announced in April 2024 a $65 billion semiconductor facility and 6,000 jobs in Phoenix. Semiconductor packaging and test services provider Amkor is building a $2 billion facility in Peoria that will create 2,000 jobs. Netherlands-based semiconductor company ASM is also investing $300 million and creating 500 jobs at a new headquarters in Scottsdale. Global technology lead Comtech announced in August 2024 that it would relocate its corporate headquarters from Melville, New York, to Chandler. In manufacturing, autonomous electric truck company Terraline announced in September 2024 that it would establish a new engineering headquarters in Phoenix.
8. Nevada
Enhancing Diversification
While Reno and northern Nevada have experienced notable investments in tech and manufacturing, a study by the UNLV Brookings Mountain West Center for Business and Economic Research and Transportation Research Center noted that most of the development in the southern part of the state has been in “lower-productivity and power-wage concentrations.” A Southern Nevada Infrastructure Working Group is striving to address long-term sustainability and resilience through some of the study’s recommendations. It noted potential in warehousing and logistics due to proximity to Southern California ports, Mexico and I-15, as well as in pursuing industries that align with federal funding streams and the regional export economy, such as supply chains supporting elective batteries and clean energy. Other parts of the state are already experiencing growth in electric vehicle batteries. Battery manufacturer Lyten announced in October 2024 that it will build a $1 billion lithium-sulfur battery factory and create 1,000 jobs near Reno.
9. Utah
Buzzing In The Beehive
The Utah Governor’s Office of Economic Opportunity notes that state-based businesses continued to perform and make record investments in the state in the 2024 fiscal year. Between July 2023 and June 2024, 20 companies participated in the state’s board-approved tax credit programs to create more than 8,500 jobs and make more than $2.4 billion in new capital investments. The EDTIF program offers a refundable tax credit for businesses creating high-paying jobs. Data intelligence company Strider announced in October 2024 an expansion and 152 new jobs in South Jordan. Precision Hermetic Technology announced in July 2024 plans to expand and create more than 210 jobs in Weber County. Edwards Lifesciences announced in July 2024 a $34.8 million investment and 560 new jobs over the next 15 years. “Utah’s dynamic and supportive business environment has fueled the facility’s growth into a critical piece of our global supply chain network,” said Joe Nuzzolese, corporate vice president for global supply chain and quality at Edwards.
14. Idaho
Rising In The Rankings
In March 2024, the Brookings Institution noted in its Metro Monitor analysis that the Boise-area economy ranks near the top in several key metrics. In terms of growth by change of jobs and gross metropolitan product, the city ranked No. 2 out of 55 metro areas with 500,000 to 1 million residents. Boise ranked No. 13 out of 55 in inclusion, or how the benefits of growth and prosperity are distributed among individuals. Growth in the state was confirmed by Milken Institute, which recognized Boise as one of the best-performing cities based on sustainable development and resilience. The Milken report also ranked Idaho Falls as the best-performing small city, noting that the diversity of its economy has allowed it to experience “inclusive and sustainable growth.” Micron is planning a $15 billion manufacturing facility in Boise, which is forecasted to create 17,000 jobs during construction and 2,000 direct jobs. It will also invest $74 million into its Community Investment Framework for community and workforce development. “Soon, Boise will be the home to one of the world’s most advanced manufacturing facilities,” said Scott DeBoer, executive vice president of Micron.
18. Wyoming
Start It Up
In September 2024, the Wyoming Business Council and Silicon Couloir announced StartUpWyoming, a collaborative initiative to enhance support for entrepreneurs and startups in the state. The group will first comprehensively assess the state’s entrepreneurial landscape to identify opportunities for strengthening programs. It will then institute education, mentoring, peer networks and funding to accelerate and simplify startup success at every stage. “StartUp Wyoming represents a critical investment in our state’s entrepreneurial future,” said Rob Kellogg, Silicon Couloir executive director, in a press release. “By assessing our current landscape and engaging with stakeholders from across the state, we aim to build a stronger foundation for startup success, which can lead to long-term job creation and economic growth.”
29. Colorado
Quality Opportunities In Quantum
Colorado is on track to becoming a global hub for quantum computing. In July 2024, Elevate Quantum, a consortium of organizations in New Mexico, Colorado and Wyoming, won a $40.5 million grant from the U.S. Department of Commerce’s Economic Development Administration. The funds are going toward rapid prototyping, low-volume manufacturing and workforce development in the state. In September 2024, Elevate Quantum and the Colorado School of Mines launched the Quantum Commons campus in Arvada. The 70-acre campus will serve as a research and innovation park to foster collaboration between academia, private companies and startups. Establishing the state as a quantum hub will eventually create more than $1 billion in economic impact and over 10,000 jobs in less than five years. “Colorado leads the world in quantum science and the concentration of quantum organizations and jobs,” said Eve Lieberman, OEDIT executive director, in a press release. “We are shovel-ready to scale the thousands of quantum jobs that exist today to tens of thousands, benefitting Colorado workers across the state with and without advanced degrees.”
21. Montana
A Booming Job Economy
An October 2024 report from the University of Montana Bureau of Business and Economic Research ranked the state second in the nation for the fastest wage growth since 2020. It also ranks eighth in the country for fastest employment growth since 2020, adding more than 30,000 jobs in the first half of 2024 alone. German company Viacom is building a $90 million plant in Lewistown that will create 500 jobs, and in January 2024, Brixtel Defense cut the ribbon on a $125 million expansion in Dawson County. While manufacturing and tech remain critical economic drivers, the state is also set to become a global leader in smart photonic sensing systems. Montana’s Headwaters Tech Hub received in July 2024 received a $41 million grant from the Regional Technology and Innovation Hub Program. The hub will span Kalispell, Missoula and Bozeman and eventually create up to 4,000 jobs.
39. New Mexico
A Growing Gateway For Global Trade And Film
New Mexico’s Borderplex region near the Santa Teresa Port of Entry is quickly growing into a new epicenter for global trade. Opened in 1993, the area has seen millions in investments from international companies like Foxconn, Hota Industrial Manufacturing, Aries Worldwide Logistics and Coast Aluminum. Meanwhile, the television and movie industry continues to grow in Albuquerque. The industry generated more than $740 million in direct production spending in fiscal year 2024. State and industry officials note that the resulting exposure from the sector is also driving other positive metrics in the state. “Our work in enriching the film tax credit proves the film industry isn’t just about entertainment; it’s a cornerstone of our economy, enriching lives and bringing prosperity statewide,” said Gov. Michelle Lujan Grisham in a press release. “With every production, we showcase our unique culture and landscapes while providing jobs and opportunities for our communities.”
43. Oregon
Strength In Semiconductors
HP announced in August 2024 it landed $50 million in federal funding from the CHIPS Act to help upgrade and expand its campus in Corvallis. The funds will support the company’s “lab-to-fab” ecosystem in developing microfluidics and microelectromechanical systems to improve the performance of semiconductor hardware. Oregon is home to more than 200 semiconductor companies, 30 of which have set up shop in the state in the past five years. The state also announced more than $40 billion in private-sector investment since the CHIPS Act was passed in 2022. In April 2024, Intel announced plans to invest more than $36 billion to expand its operations at its global R&D center in Washington County. “With support from industry leaders, the federal designation, our universities and local leadership, Oregon is excited for the potential to host an NSTC-affiliated technical center and advance our strong track record as a leader in the semiconductor supply chain,” said Gov. Tina Kotek in a press release.
46. Washington
Clean Energy And Quantum Computing
Washington is investing more in clean energy and the green economy. The Washington State Department of Commerce announced in September 2024 a total of 46 grants worth $37 million to support energy planning, design and construction jobs across the state. In a press release, Commerce Director Mike Fong noted that the wide range of projects funded reflects the state’s overarching climate goals to create economic opportunities, reduce reliance on fossil fuels, increase power supply resilience and strengthen the clean-technology supply chain. The quantum computing industry is also growing here. IonQ, a leading quantum computer company, opened its first quantum computer manufacturing facility in Bothell in early 2024. “The Seattle facility represents a tangible realization of IonQ’s commitment to commercializing quantum and getting quantum computers into the hands of customers,” said Peter Chapman, president and CEO of IonQ, in a press release. “IonQ is not just building a manufacturing facility; we’re also investing in the surrounding community, drawing talent and thought leaders to Seattle and empowering organizations within the community with innovative quantum capabilities.”
50. California
Another Step In The Innovation Economy
The U.S. Department of Commerce selected Sunnyvale as the location for the CHIPS for American Design and Collaboration Facility (DCF) in November 2024. It will be one of three U.S. CHIPS R&D facilities and will operate as the headquarters of the NTSC and Natcast. The DCF will serve as a center for advanced semiconductor research in chip design and architecture and integral to workforce development efforts. The project is expected to drive more than $1 billion in research funding and create more than 200 direct jobs over the next decade. Meanwhile, California has witnessed other investments in manufacturing, tech and clean-energy projects. In the summer of 2024, the U.S. Department of Energy and ARCHES announced a $12.6 billion agreement to build a renewable hydrogen hub in the state, the first of seven to be built in the country. OnSight Technology established its headquarters and research operations facility in Folsom and with 60 new jobs. Takeda Pharmaceuticals also announced in June 2024 a $230 million expansion and 125 new jobs in Los Angeles. “We are pleased to make this investment at our L.A. site, demonstrating our commitment to our manufacturing footprint in the U.S.,” said Thomas Wozniewski, global manufacturing and supply officer at Takeda, in a press release.
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