Journal of Science Policy & Governance
Volume 26, Issue 01 | June 15, 2025

Policy Memo 
​Reshoring Semiconductor Manufacturing in Arizona 

Stefano Roccasecca1, Amey Gaikwad1, Armen Khanbabaei1
  1. University of California Los Angeles, Los Angeles, CA, USA
​​
​Corresponding author:  [email protected] ​​
Keywords: semiconductors; reshoring manufacturing; CHIPS Act; Arizona ​
https://doi.org/10.38126/JSPG260109

Executive Summary

Arizona stands at the forefront of a national effort to reshore the semiconductor supply chain, with substantial investments from the Creating Helpful Incentives to Produce Semiconductors and Science Act, (CHIPS Act 2022), and industry leaders such as Intel and Taiwan Semiconductor Company (TSMC). Arizona is ideal for semiconductor manufacturing because of its business-friendly tax structure, cheap land, and its history with the industry. However, realizing Arizona’s potential as a semiconductor hub requires overcoming critical market forces, as the state currently lacks sufficient incentives to attract entrants and create spillover benefits in the market. This proposal recommends certain tax incentives specifically to attract semiconductor companies throughout the supply chain. This policy action offers an approach to fostering innovation and ensuring Arizona’s long-term competitiveness in the semiconductor sector. By aligning state policy with industry needs, Arizona can secure its place as a leader in the U.S. semiconductor landscape, driving economic growth, supply-chain resilience, and technological innovation.

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Background header image courtesy of Fox Businees
Amey Gaikwad is a Physics PhD student studying theoretical high-energy particle physics at the Mani L. Bhaumik Institute for Theoretical Physics at the University of California Los Angeles (UCLA), where he studies aspects of confinement and strongly coupled phenomena. Beyond physics academia, he is committed to science policy, diplomacy, communication, and outreach to promote evidence-based decision-making. He serves as the Chair of Professional Development for the UCLA Science Policy Group, working to bridge scientific research with policymaking and broader public engagement. 

Armen Khanbabaei is a PhD student in Molecular, Cellular, and Integrative Physiology (MCIP) at UCLA, specializing in RNA biology and its role in disease. In Grace Xiao’s lab, he collaborates with colleagues to integrate experimental and computational approaches to uncover mechanisms driving cellular functions and disease states, focusing on the epitranscriptome, innate immunity, and neurodegenerative disorders. An experienced educator, he has mentored students in biology and advocates for accessible science communication. Armen aspires to bridge fundamental discoveries with real-world applications to advance human health and therapeutics. 
​
Stefano Roccasecca is a Ph.D. student in physics at UCLA. His current research interests include quantum computing in semiconductors, simulation of high-frequency circuits, and fabrication of quantum devices. He completed his B.S. and M.A. at the University of Pennsylvania. Before starting at UCLA, Stefano worked as a Laser Scientist for the Air Force Research Lab. He volunteers for scientific outreach through campus organizations. His interest in policy stems from the current geopolitical environment of the semiconductor industry and its value on national security and entrepreneurship initiatives. His first introduction to science policy was through the National Science Policy Network (NSPN). ​

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