At ASU, Sonoran economists envision cross-border cooperation on semiconductors

Two researchers from Sonora are spending the school year at Arizona State University, to see how their state fits into Arizona’s blooming chip industry.

That question is at the heart of Edna María Villarreal and Humberto García’s yearlong residency at ASU. The two economists from Universidad de Sonora and El Colegio de la Frontera Norte will study how policy could help the two states work together better.

“It’s already a fact” that the semiconductor industry is coalescing around Arizona, says García. The latest example: Amkor Technology breaking ground on a $7 million chip plant.

García says one way Sonora could get involved is by supplying renewable energy. The state’s many days of sunlight and relatively inexpensive land make it a good bet for solar farms. One farm near Puerto Peñasco could become Latin America’s largest when the project is complete. It’s just miles from the Arizona border.

García suggests loosening restrictions on both sides to send some of that energy to Arizona’s chip factories. It’s crucial to the environment that these companies use renewable energy and recycled water, García says, and he sees a future in which Sonora can help.

“If we don’t plan well, we’re going to increase the amount of energy, emissions and pollutants [with these factories],” García says. He hopes the region can avoid a future in which chip factories end up being an ecological burden for the Arizona-Sonora region.

In addition to joining Arizona in the energy sector, Villarreal hopes Sonora can also take part in the growing labor needs of the semiconductor industry.

“They’re going to need a big workforce,” Villarreal said. She sees big opportunities to train Sonorans to meet those workforce needs, with people specially trained to jump into the semiconductor sector. Her research will focus on ways to develop Sonora’s workforce.

State and federal officials in Mexico also hope Sonorans aren’t left behind as the United States continues to seek to reduce its reliance on Asia for semiconductors, while Mexico also looks to bolster the sector inside its own borders. Sonora is one of three states Mexico has identified for the future of its national semiconductor design program, known as Kutsari, partially because of its proximity to Arizona.

As the industry grows, the two states are going to need to work together, García said.

“We can’t be disconnected,” García said. “If things go well in Arizona, they go well in Sonora, and vice versa.”