ASM International N.V. has announced plans for a new North American expansion to accommodate the growing demand for R&D in the semiconductor industry.

Particularly, ASM is investing €300 million over a period of up to five years to design and construct the new state-of-the-art site on more than 20 acres in Scottsdale, Arizona. This total investment is a combination of capital expenditures related to infrastructure and lab equipment. At the same time, it will also include operational expenses such as the additional research and engineering jobs created with the expansion.

“ASM’s facility in Arizona has always been a key center for the development of leading technologies that enabled many breakthroughs in the global semiconductor industry,” said Benjamin Loh, CEO of ASM. In addition, Loh said, “The investment in our new facility in Scottsdale will substantially expand our research and development activities, further strengthening Arizona as a hub for top-notch semiconductor innovation.”

State-of-the-Art Facilities

The new North American headquarters will cover 250,000 square feet, more than double the size of the current facility. The global technology and innovation center will house a variety of functions under one roof. Thus, allowing ASM departments to collaborate more efficiently.

This includes investing in leading-edge lab equipment and state-of-the-art infrastructure. Particularly, it will not just be for research and development, but also for renewable energy, a water recycling facility, and other sustainability features. Some of ASM’s global operations and corporate support functions will also be on-site. This includes supply chain, manufacturing engineering, a Global Training Center, and the Global Software Team.

“Arizona is proud to celebrate ASM’s high-tech expansion, a project that further cements Arizona’s semiconductor leadership and bolsters U.S. resilience and competitiveness,” said Governor Katie Hobbs. “We’re grateful to celebrate this new milestone in the Arizona-Netherlands partnership and thank ASM for their continued commitment to Arizona.”

ASM first established its North American headquarters in Phoenix, Arizona, in 1976 and was one of the first semiconductor equipment companies in Arizona. Moreover, ASM has seven R&D centers and several manufacturing facilities around the world, with its global headquarters located in the Netherlands. Recently, political and economic leaders from the Netherlands visited Arizona to celebrate ASM’s expansion announcement.

“Arizona and the U.S. are valuable partners in the Netherlands’ mission to co-create solutions that promote innovation and partnerships in the global semiconductor value chain,” said Mark Rutte, Prime Minister of the Netherlands. “It is through these types of cross-border collaborations that we are shaping the future of advancements in this growing industry.”

“ASM’s expansion in Arizona is one example of how we are looking to establish opportunities for Dutch and U.S. companies to exchange knowledge and establish meaningful partnerships,” said Micky Adriaansens, Minister of Economic Affairs and Climate Policy of the Netherlands. “With its new North American headquarters, ASM will support its key customers’ expansion of leading-edge device manufacturing in Arizona, in the rest of the U.S., and globally, contributing to a more resilient, innovative and competitive semiconductor supply chain.”

Robust R&D Capability

Meanwhile, ASM’s equipment is a key technology for the semiconductor integrated-circuit chips needed to make the electronics products that consumers and businesses use everywhere. Specializing in the wafer equipment market, ASM’s focus is on the deposition of thin films, designing, making, selling, and servicing deposition tools to supply customers with advanced technologies used in wafer fabrication plants. Moreover, ASM’s customers include the companies that make the world’s top semiconductor devices.

“ASM’s expansion further positions Arizona as the nation’s leading center for semiconductor innovation and manufacturing,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “ASM has been a longtime industry partner in Arizona, and we look forward to supporting their continued success.”

ASM currently employs over 800 people in Arizona and plans to hire an estimated additional 500 people over the next six years. Thus, creating new job opportunities in engineering as well as research and development. The site will be designed as a destination to work, with various amenities that will provide support to employees in accomplishing their work and their general wellbeing.

David D. Ortega, Mayor of Scottsdale, said, “ASM will be locating over 1,000 high-paying technology jobs in our city and their focus on sustainability ensures they will be a fantastic community partner in the shared goal to preserve our most valuable resources.”

“The burgeoning relationship between Greater Phoenix and the Netherlands is strengthened by partners like ASM that drive the advanced manufacturing ecosystem, create important jobs, and commit to sustainable efforts around the region,” said Greater Phoenix Economic Council President and CEO Chris Camacho.

In addition, Camacho said, “This massive investment goes beyond the dollars, with plans to improve irrigation and river systems in Arizona as ASM continues to show good stewardship of its U.S. home.”

Strong Partnerships

Sustainability has been a cornerstone of ASM’s global business processes and will continue to be a main theme with the new North American headquarters. ASM will pursue LEED rating for the new facility while also driving programs for energy and water reuse. ASM commits reclaimed water system improvements to further reduce use and recycling of water, and targets more than 80% reclaimed water in the new facility.

Moreover, ASM’s current facility in Arizona has reduced its absolute water use by 60% from 2017 to 2022, even with substantial growth in its business activities during this period. Construction of the new North American facility is expected to take about three years.

In connection with ASM’s sustainability efforts, the company also announced new multi-year partnerships with local organizations. One of these partnerships is with The Nature Conservancy (TNC), where ASM will support TNC with three-year investments to its Restoring Flows program, starting with a $130,000 investment in year one, which completes Phase 1 funding of the project.

Hence, this project will improve the irrigation systems in the Verde Valley and strengthen the long-term resilience of the Verde River, one of the last free-flowing river systems in the state and a critical water supply for the Phoenix metro area. Over the next three years, ASM will help fund this innovative water restoration program to save millions of gallons of water for the Verde River annually, which will in turn address environmental concerns and enhance the well-being of the community and wildlife in the region.

Moreover, ASM also announced a new partnership with the Arizona Sustainability Alliance (AZSA), where ASM will support AZSA with a $240,000 investment over three years to its Urban Forestry Tree Planting & Associated Education Initiatives and its annual events like the Sustainability Celebration and Conservation Invasion. Over the next three years, ASM will fund the planting of more than 250 trees and ASM employees will take part in tree planting volunteer days.