Scottsdale approves development agreement for ASM’s new flagship facility

Advanced Semiconductor Materials’ new north Scottsdale headquarters and research facility is a step closer to reality following city approval of a development agreement.

Scottsdale City Council unanimously approved the agreement at its Sept. 17 meeting that would reimburse the company for public infrastructure needed to build out the headquarters. Should ASM meet performance requirements, the capped reimbursement to the company would be $6.35 million.

Within six years, ASM must construct its new 400,000-square-foot facility, add 500 jobs with an average wage of $110,000 and achieve a payroll of $55 million. If those requirements aren’t met, ASM’s reimbursement from Scottsdale will be reduced by 5% every month until they are.

In total, ASM’s expected capital expenditure for its new headquarters would be more than $400 million between the land acquisition, project buildout and equipment housed within the facility.

ASM, a Dutch multinational company that will use Scottsdale as its North American headquarters, committed to securing and transferring 600-acre feet, or more than 195 million gallons, of renewable water supplies back to the city of Scottsdale, according to the agreement.

“I think this is an excellent use for this area because it gives us a piece of the technology business, which is booming around the Valley between Intel, TSMC, etc,” said Councilmember Tom Durham before the vote. “I think it’s very important that we play a role in this [and] diversify our economic base.”

ASM designs and supplies wafer processing equipment to customers, primarily for the deposition of thin films — a fabrication process used in semiconductor manufacturing.

The expansion would bring about 1,200 jobs into Scottsdale with more than 700 coming over from the city of Phoenix. ASM would add to its team along with hiring 500 new employees with the new facility. ASM’s existing headquarters is at 3440 E. University Drive near Phoenix Sky Harbor International Airport.

“We are thrilled that the Scottsdale City Council has approved the development agreement for ASM’s new North American headquarters. We look forward to continuing to collaborate with city officials and stakeholders in the months ahead. With ASM’s nearly 50-year presence in Arizona, our teams will continue to live, work, and build community here,” the company wrote in a statement to the Business Journal. “True to our global commitment to sustainability, and in Arizona, this facility will feature robust water conservation systems and green infrastructure. When complete, our Scottsdale facility will be a key corporate and innovation center where our talented teams will advance the semiconductor technologies of tomorrow.

Expansion in the works for more than a year

ASM’s expansion into north Scottsdale has been in the works for more than a year. Last August, ASM purchased nearly 24 acres from De Rito Partners near the southeast corner of Scottsdale Road and Loop 101 — the site of its new headquarters. ASM America bought the land for more than $33 million, which amounted to more than $1.38 million an acre, according to previous reporting. It was originally state trust land that De Rito acquired in an Arizona State Land Department auction in April 2022.

The area around ASM’s future headquarters is exploding with major developments such as the Cavasson mixed-use campus, One Scottsdale. and Banner Health’s planned $400 million hospital campus. It is directly next to Optima McDowell Mountain Village, which is under currently construction.

ASM unveiled details of the new headquarters last December, which include a research and development lab, a cleanroom with metrology equipment and “leading-edge process tools. Potential amenities for employees consist of nursing, meditation and yoga rooms, basketball and tennis courts, a gym, a full-service cafeteria and indoor/outdoor atrium space, according to previous reporting.

Gensler is the project architect.

In addition to the Scottsdale headquarters, ASM will occupy its existing facility on University Drive until its lease expires in 2028, the company previously told the Business Journal.