KPPC Advanced Chemicals Inc., part of the Kanto Group, has begun construction on its new U.S. Arizona Plant (UAP) in Casa Grande. The groundbreaking ceremony took place on December 19 at the Sonoran Valley Industrial Park.
The new facility represents a significant investment aimed at strengthening the U.S. semiconductor supply chain by expanding domestic production of ultra high-purity chemicals needed for advanced chip manufacturing. With an initial investment exceeding $120 million, KPPC plans to start production at the plant in late 2027.
Governor Katie Hobbs commented, “This investment strengthens Arizona’s rapidly expanding, world-class semiconductor ecosystem by bringing the essential manufacturing of ultrapure chemicals to the heart of where they are needed. Best of all, it will create approximately 200 high-quality, full-time jobs for Arizonans, and collaborate with our community colleges to prepare our workforce for advanced roles. Projects like this one are key to building a resilient, localized materials network right here in Arizona.”
Jerry Lu, Chairman & CEO of Kanto-PPC, stated, “The Arizona plant marks an important milestone in KANTO-PPC’s global expansion. By establishing this site, we strengthen our ability to serve customers across North America with the quality, reliability, and speed demanded by the world’s most advanced semiconductor manufacturers.”
Once operational, the UAP facility will supply companies such as TSMC, Intel, and Micron with high-purity materials for next-generation logic and memory technologies. The project is expected to grow into a full chemical campus with total investments projected at around $500 million by 2035.
Sandra Watson, President and CEO of the Arizona Commerce Authority (ACA), said, “Arizona has emerged as North America’s premier semiconductor hub–home to the most advanced chip processing technology in the country. KPPC’s new campus represents a vital ecosystem addition and showcases the expansive supply chain growth taking place across the state.”
Christine Mackay, President and CEO of Greater Phoenix Economic Council added: “As the U.S. prioritizes the onshoring of semiconductor production, increasing the capacity of vital supply chain elements is essential to the continued growth of the industry. The addition of KPPC in Pinal County fortifies the importance of Greater Phoenix as the heart of domestic semiconductor manufacturing.”
Phase 1 will generate about 80 highly skilled jobs initially and expand to 200 full-time positions upon completion. Construction is also set to create hundreds of contractor and supplier opportunities throughout Pinal County and Greater Phoenix.
KPPC intends to work with regional workforce programs and educational institutions to develop talent for roles in chemical operations and semiconductor support fields.
The ACA has previously reported record-breaking economic development results; in Fiscal Year 2022 it helped create a projected 24,186 new jobs statewide—well above its target—with $10.75 billion invested in local communities (https://www.azcommerce.com/news-events/news/2022/9/more-jobs-than-ever-before-arizona-economic-development-sets-record-again/).
KPPC Advanced Chemicals Inc. is a subsidiary of KANTO-PPC—a leading supplier serving major chip manufacturers worldwide—and its decision aligns with national efforts to reinforce domestic semiconductor infrastructure.
