KPPC launches $120 million Arizona ultrapure chemical plant, boosting U.S. semiconductor supply chains and creating 200 high-quality jobs.
KPPC Advanced Chemicals, a subsidiary of the Japan-based Kanto Group, has officially commenced construction of its new U.S. Arizona Plant (UAP), marking a significant milestone for the American semiconductor materials industry. The groundbreaking ceremony took place at the Sonoran Valley Industrial Park in Casa Grande, where the company plans to develop a state-of-the-art campus dedicated to the manufacturing of next-generation ultrapure chemicals.
The Arizona project represents a strategic investment aimed at strengthening the domestic semiconductor supply chain at a time when the United States is prioritizing the localization of critical manufacturing inputs. Ultrapure and specialty chemicals are essential to advanced chip fabrication, and KPPC’s new facility is designed to support the growing demand generated by large-scale semiconductor investments across the state.
Arizona Governor Katie Hobbs highlighted the broader economic and strategic importance of the project, stating that the investment reinforces Arizona’s reputation as a rapidly expanding, world-class semiconductor hub. By locating ultrapure chemical manufacturing close to major chip fabrication facilities, the project ensures that essential materials are produced precisely where they are needed most. In addition to industrial benefits, the development is expected to generate approximately 200 high-quality, full-time jobs for local residents while supporting workforce development initiatives in partnership with community colleges.
Jerry Lu, Chairman and Chief Executive Officer of Kanto-PPC, described the Arizona plant as a pivotal step in the company’s global growth strategy. According to Lu, establishing a manufacturing base in Arizona enhances KPPC’s ability to meet the stringent quality, reliability, and delivery speed requirements of leading semiconductor manufacturers throughout North America.
The first phase of the UAP development involves an initial capital investment of $120 million. During this phase, the facility will manufacture ultrapure and proprietary functional chemicals used across key semiconductor processes, including wafer cleaning, etching, chemical mechanical planarization (CMP), photolithography, and advanced packaging. Commercial production is targeted to begin in late 2027. Over the long term, KPPC expects the site to evolve into a comprehensive semiconductor chemical campus, with cumulative investments projected to reach $500 million by 2035.
Once operational, the Casa Grande facility will supply critical materials to major chipmakers such as TSMC, Intel, and Micron. By co-locating chemical production near customer fabrication plants, KPPC aims to reduce logistical complexity, mitigate supply risks, and contribute to a more resilient and reliable domestic semiconductor ecosystem.
Sandra Watson, President and CEO of the Arizona Commerce Authority, noted that Arizona has emerged as North America’s leading semiconductor destination, hosting some of the most advanced chip processing technologies in the country. She emphasized that KPPC’s new campus represents a crucial addition to the state’s rapidly expanding semiconductor supply chain.
Similarly, Christine Mackay, President and CEO of the Greater Phoenix Economic Council, underscored the importance of expanding upstream supply chain capacity as the United States accelerates semiconductor onshoring. She added that KPPC’s presence in Pinal County further strengthens Greater Phoenix’s role as the core of domestic semiconductor manufacturing.
During Phase 1, the project is expected to create around 80 highly skilled positions, with total employment rising to approximately 200 full-time roles as the campus reaches full operation. In addition, the construction phase will support hundreds of contractor and supplier jobs across Pinal County and the Greater Phoenix region. KPPC also plans to work closely with regional workforce programs, community colleges, and technical institutions to build long-term talent pipelines in chemical operations, laboratory services, maintenance engineering, and semiconductor manufacturing support functions.
