(The Center Square) – A new semiconductor supply chain facility is coming to Chandler, a city near Phoenix.
The city of Chandler announced that TOCALO, a Japanese-based company, will be opening a 30,245-square-foot facility.
The new facility will be TOCALO’s second in America, with the first one being in La Palma in Southern California’s Orange County.
TOCALO makes coating technologies that support critical processes within the semiconductor manufacturing supply chain.
Yasuki Nakahira, TOCALO’s vice president of global business development headquarters, said the company “found Chandler’s environment and property to be perfectly aligned with our operational vision.”
Chandler Mayor Kevin Hartke said the city is “proud to welcome” TOCALO.
“TOCALO’s advanced surface-treatment and thermal-spray technologies are integral to leading semiconductor manufacturing equipment, and the company’s decision to locate in west Chandler reflects strong confidence in our workforce, infrastructure and business environment,” the mayor said.
“This investment will strengthen the semiconductor supply chain, create high-quality jobs and further reinforce Chandler’s role in the global semiconductor ecosystem,” he added. “We look forward to supporting TOCALO’s successful launch and long-term growth in our community.”
The Japanese company is leasing a building for $8.5 million, according to Edyie McCall, a senior program manager for the city of Chandler’s economic development team.
TOCALO expects to create 33 jobs at the facility over the first three years, with an average salary of $63,030, McCall told The Center Square.
The company will “make a great impact” on the city’s semiconductor industry, she said, noting the city has over 31 semiconductor companies operating in it.
McCall said the city of Chandler has targeted industries, which include automatic technology, aviation and aerospace, business and finance services, health care, bioscience, information technology and software and high tech manufacturing.
Chandler has a “diversified community” of businesses, McCall said. She added the city did not provide any tax subsidies to TOCALO.
Alyssa Tufts, the vice president of the Arizona Commerce Authority, told The Center Square by email that TOCALO qualified for $660,000 in performance-based tax credits.
Arizona will give a smaller amount of taxpayer money between two options.
The first option is 10% of TOCALO’s total investment in its facility, and the second option is based on the number of jobs created. For investments under $2 billion, the tax subsidy per new job is $20,000. However, if an investment exceeds $2 billion, it increases to $30,000 per job.
If TOCALO creates the expected 33 jobs, then it would receive $660,000.
Zach Venvertloh, vice president of Business Development at the Greater Phoenix Economic Council, told The Center Square that his organization partnered with the Arizona Commerce Authority and the city to help bring TOCALO to Chandler.
The economic council’s main role was helping the company understand “dynamics of the market from a lifestyle aspect,” such as helping the company figure out where potential employees would be living, eating and seeking entertainment, he noted.
On top of this, Venvertloh said the economic council helped the company connect with general construction companies to build out its facility.
A company like TOCALO “adds to the supply chain” by helping “other companies to carry out operations,” he said.
TOCALO is a “quality employer” that will help strengthen the state’s semiconductor ecosystem, Venvertloh said.
With the company’s addition, the greater Phoenix region “becomes more attractive for additional semiconductor companies,” he explained.
Venvertloh said the greater Phoenix area is a “global leader in the semiconductor industry.” Since 2020, when TSMC entered Phoenix, the economic council has helped more than 50 semiconductor companies establish operations in the region, he noted.
Phoenix is “truly on the map for any global company that is looking to expand [its] footprint in the semiconductor industry,” Venvertloh said.
Last month, Arizona and Japan signed a memorandum of understanding to strengthen economic ties across industries, including semiconductors, research and development, and workforce development.
