Breaking Ground: Change isn’t coming — it’s here
1Digest
This episode of Marketplace's "Breaking Ground" series explores the impact of billions of federal dollars flowing into Phoenix, Arizona, specifically for the construction of high-tech semiconductor factories by companies like Intel and TSMC. The episode focuses on a small area called the Golden Triangle, which is experiencing rapid development and attracting workers from across the country. The episode highlights three competing interests in the area: small businesses hoping to benefit from the influx of people, real estate developers capitalizing on the land value increase, and long-time residents who are concerned about the loss of their rural lifestyle. The episode explores the tension between economic growth and community preservation, and the role of government in shaping the future of the area.
Outlines
Thank You to Our Donors
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Breaking Ground: The Golden Triangle
This Chapter introduces the "Breaking Ground" series and its focus on the economic impact of the Inflation Reduction Act, the Bipartisan Infrastructure Law, and the Chips Act. The episode takes place in Phoenix, Arizona, where billions of dollars are being invested in semiconductor factories, leading to rapid development and attracting workers from across the country.
Competing Interests in the Golden Triangle
This Chapter introduces the three competing interests in the Golden Triangle: small businesses, real estate developers, and long-time residents. The episode explores the perspectives of each group and the challenges they face as the area undergoes rapid development.
Keywords
TSMC
TSMC (Taiwan Semiconductor Manufacturing Company) is the world's largest semiconductor foundry, headquartered in Taiwan. It is a leading manufacturer of integrated circuits (ICs), which are essential components in electronic devices. TSMC's investment in Phoenix, Arizona, is a significant development for the US semiconductor industry and is driving economic growth in the area.
Chips Act
The CHIPS and Science Act of 2022 is a US federal law that provides billions of dollars in subsidies and tax credits to boost domestic semiconductor manufacturing. The act aims to reduce reliance on foreign suppliers, strengthen national security, and create jobs in the US. The Chips Act is a major driver of the development in Phoenix, Arizona, as it incentivizes companies like TSMC to build factories in the US.
Golden Triangle
The Golden Triangle is a small area in North Phoenix, Arizona, that is experiencing rapid development due to the construction of semiconductor factories. The area is characterized by its proximity to TSMC's new factory and its transition from a rural landscape to a more urbanized area. The Golden Triangle is a microcosm of the broader economic and social changes happening in Phoenix and across the US.
Semiconductor
Semiconductors are materials that have a conductivity between that of a conductor and an insulator. They are essential components in electronic devices, including computers, smartphones, and cars. The global semiconductor industry is experiencing a surge in demand, leading to increased investment in manufacturing facilities, such as those being built in Phoenix, Arizona.
Phoenix, Arizona
Phoenix is the capital and most populous city in Arizona. It is a major center for business, tourism, and culture. Phoenix is experiencing rapid growth, driven by factors such as the semiconductor industry, the influx of people from other states, and the favorable climate. The city is facing challenges related to housing affordability, infrastructure, and environmental sustainability.
Economic Development
Economic development refers to the process of improving the standard of living in a region or country. It involves creating jobs, attracting investment, and fostering innovation. The development of the semiconductor industry in Phoenix, Arizona, is an example of economic development, as it is creating jobs, attracting investment, and driving innovation in the area.
Community Preservation
Community preservation refers to the efforts to maintain the character and quality of life in a community. It involves protecting historical landmarks, preserving natural resources, and promoting social cohesion. The residents of the Golden Triangle in Phoenix, Arizona, are concerned about the impact of development on their community and are advocating for community preservation.
Government Role
The government plays a significant role in economic development and community preservation. It can provide incentives to businesses, invest in infrastructure, and regulate land use. The Chips Act and other government initiatives are driving the development in Phoenix, Arizona, while local governments are responsible for balancing economic growth with community concerns.
Q&A
What is the impact of the Chips Act on Phoenix, Arizona?
The Chips Act is providing billions of dollars in subsidies and tax credits to boost domestic semiconductor manufacturing, leading to significant investment in factories in Phoenix, Arizona. This investment is driving economic growth, creating jobs, and attracting workers from across the country.
What are the competing interests in the Golden Triangle?
The Golden Triangle is experiencing rapid development due to the semiconductor industry, leading to three competing interests: small businesses hoping to benefit from the influx of people, real estate developers capitalizing on the land value increase, and long-time residents who are concerned about the loss of their rural lifestyle.
How are the residents of the Golden Triangle reacting to the development?
Some residents are excited about the economic opportunities and amenities that development brings, while others are concerned about the loss of their rural lifestyle, increased traffic, and the impact on their property values.
What is the role of government in the development of the Golden Triangle?
The government is playing a significant role in the development of the Golden Triangle through the Chips Act and other initiatives. Local governments are also responsible for balancing economic growth with community concerns, such as zoning regulations and infrastructure development.
What are the challenges facing the Golden Triangle as it undergoes rapid development?
The Golden Triangle is facing challenges related to housing affordability, infrastructure, and environmental sustainability. The rapid influx of people is putting pressure on housing supply, while the development is also impacting the natural environment.
Show Notes
A small neighborhood in the Phoenix area, full of farm animals and dirt roads, is in turmoil: A huge TSMC semiconductor plant, now under construction, is bringing with it a wave of commercial development and new residents. Champions of the project say the jobs and housing are sorely needed, but locals feel the transformation threatens their way of life. In this episode, we’ll visit the so-called Golden Triangle and meet stakeholders who include longtime residents, small-business owners, a city councilwoman and a real estate developer.
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