Semiconductor factory could draw chemical plant to Ariz.

The massive Taiwan Semiconductor Manufacturing Co. factory planned for north Phoenix appears to be attracting interest in related investment in Arizona.

One of the biggest producers of chemicals for semiconductor makers, LCY Chemicals, is considering building a factory in Arizona to supply Taiwan Semiconductor. It would add to metro Phoenix’s growing semiconductor nucleus that also includes Intel, Microchip Technology, ON Semiconductor and NXP Semiconductors.

The prospective chemical-purifying plant would be the company’s largest such investment outside of Taiwan, where LCY Chemicals is based, according to a report by Nikkei Asia.

“We are actively planning this new plant in the U.S.,” CEO Vincent Liu told the Japanese publication, reflecting a desire to locate the semiconductor supply chain closer to customers for various reasons.

For example, a recent shortage of semiconductors for vehicle production has led to bottlenecks in auto manufacturing. Phoenix-based ON Semiconductor, which supplies chips used by automakers, recently cited “delays in fulfilling certain customer orders due to supply chain constraints” that were exacerbated by the COVID-19