Scottsdale unanimously approves $300 million ASM semiconductor headquarters, 500 jobs

Scottsdale Seals $300 Million ASM Semiconductor Headquarters Deal in Unanimous Vote; Brings 500 High-Wage Jobs and Strategic Water Asset

On September 17, 2024, the Scottsdale City Council unanimously adopted Resolution 13158, green-lighting a development agreement with Advanced Semiconductor Materials (ASM) to establish the company's North American headquarters and largest innovation center on 21 acres south Loop 202. The vote was not a formality—it capped nearly a year of staff coordination and deal refinement, according to council members, and landed on an agreement so thoroughly vetted that council members openly marveled at the alignment between public and private interests.

ASM, a 56-year-old Dutch-founded equipment supplier to chipmakers Intel and TSMC, will invest over $300 million in a 400,000-square-foot R&D facility, relocate 500 net-new positions from Phoenix to Scottsdale (700 existing jobs are also relocating), and deliver 600 acre-feet of renewable water—195+ million gallons—to the city. The direct economic impact to Scottsdale is estimated at $8 million over ten years; with indirect effects included, the figure exceeds $14 billion regionally.

The deal required no rezoning; ASM's operations fit existing industrial (I-1) zoning. Instead, the council approved a performance-based infrastructure reimbursement agreement capped at $6,351,659.84, contingent on ASM building a $55 million payroll by year six and constructing required public roadway segments and utility infrastructure.

Key Speeches

"This new headquarters really does serve as a magnet for top talent. It diversifies our industry base, which is a huge focus of our economic development strategic plan to make sure that we are active in emerging technology and emerging technologies." — Terry Kilgore, Economic Development Director

"We supply deposition equipment to leading semiconductor manufacturers like the Intels and TSMCs of the world. We design and develop equipment in a true R&D setting, develop tools, make sure they meet customer specifications and customer requirements, and then we ship those tools to customer sites and work with them to qualify it into their production flows." — Steve Ryder, ASM Corporate Vice President

"As a former chemist and a former chemistry teacher, I am so appreciative that you will be working with SSD to support our STEM projects. I think we all know when you major in science you put in a whole lot of time in that lab, but to know that these opportunities exist at the end of that curriculum is really tremendous for our school system, for our students, for keeping our families here." — Councilwoman Jan Dubauskas

"This is such a good place to do business, such a good place to live. The company has been very proactive working with your neighbors, with me, with others on council to address some design issues—some pretty significant ones. That is the kind of cooperation that really helps make these projects move smoothly." — Councilwoman Solange Whitehead

Timeline

• Applicant presentation: Terry Kilgore outlined ASM's footprint, job creation, wage profile ($110,000 average), and public-benefit commitments; Steve Ryder, ASM vice president, highlighted the company's 48-year Arizona presence, R&D focus, and net-zero-by-2035 sustainability targets.
• Staff recommendation: Adoption of Resolution 13158 with unanimous staff endorsement across departments (Water Resources, Transportation, City Attorney, Community Development).
• Public comment: Four speakers in favor—Daniel Isaac (resident praising ASM's community partnership), Alan Damra (ASM employee who relocated from Silicon Valley), Brad Schmidt (Greater Phoenix Economic Council vice president citing regional semiconductor ecosystem benefits), and David Hovy Jr. (Optima development president) who flagged design coordination issues with neighboring project to be resolved at October 3rd DRB hearing.
• Council discussion: All six council members speaking praised the deal. Council Member Tom Durham emphasized that no rezoning was needed and that the infrastructure reimbursement merely accelerated roadwork (Mayo Boulevard, Miller Road) the city would eventually build. Jan Dubauskas and Solange Whitehead commended ASM's STEM commitments and design cooperation with neighbors. Mayor David Ortega closed with remarks on intellectual property generation, national security value, and the historical significance of State Trust Land proceeds supporting education.
• Vote: Unanimous voice vote in favor of Resolution 13158.

Opposition

None recorded. No speakers against the project.

Support

• Number of speakers: Four.

• Main themes:

  1. Diversification of Scottsdale's technology industry base and economic resilience.
  2. High-quality, high-wage jobs (average $110,000) in a technically skilled, PhD-heavy workforce.
  3. ASM's established 48-year track record in Arizona and international reputation.
  4. Water stewardship: 600 acre-feet of renewable water delivered to the city with advanced recycling systems (80% lab water recovery) and net-zero environmental targets.
  5. STEM education partnerships with Scottsdale Unified School District (Design My Future for middle school, Sisters in STEM for high school girls).
  6. No rezoning required; existing industrial zoning accommodates the use.
  7. Public infrastructure acceleration (Mayo Boulevard, Miller Road) that benefits the broader corridor.

• Most compelling arguments: Council Member Durham stressed that the infrastructure reimbursement was "money that the city would eventually be spending in any event" and that ASM's R&D operation is "a very low impact business." Mayor Ortega's closing remarks tied the deal to the historical purpose of State Trust Land proceeds—education and economic advancement—and noted that intellectual property generated in Scottsdale strengthens national security and regional competitiveness.

• Organized groups: Greater Phoenix Economic Council officially endorsed the project through Brad Schmidt, its senior vice president.

Project Details

• Case number: Resolution 13158
• Applicant / developer: Advanced Semiconductor Materials (ASM America Incorporated)
• Company officers presenting: Steve Ryder (Corporate Vice President); Yumi Taylor and Odette Baker (ASM team, noted by staff for cooperation).
• Location / address: 21 acres immediately south of Loop 202, in the vicinity of Mayo Boulevard and Miller Road corridor; purchased from Dorito Partners (master developer).
• Current zoning → Proposed zoning: I-1 (Industrial) → I-1 (no rezoning required).
• Facility size and scope: 400,000 square feet of commercial R&D space.
• Headcount: 500 net-new jobs, plus relocation of 700 existing Phoenix-area positions; total company presence on campus will rank ASM among Scottsdale's top 10 private employers.
• Payroll target: $55 million by year six (milestone deadline).
• Average wage: $110,000 per position (primarily corporate functions, R&D, engineering).
• Capital investment: Over $300 million (land, building, equipment).
• Water commitment: 600 acre-feet (195+ million gallons) of renewable water, front-loaded delivery; water recycling system capable of recovering 80% of lab water; penalties in contract if water return schedule not met.
• Environmental commitments: LEED Green Building certification; net-zero emissions target by 2035; currently 100% renewable electricity globally; pursuing Greater Phoenix Green Initiative infrastructure handbook guidelines.
• Infrastructure obligations by ASM: Construction of specified Mayo Boulevard and Miller Road segments; sewer, water, and storm-water utility buildout.
• Reimbursement structure: City reimburses eligible public-infrastructure costs only; maximum cap $6,351,659.84; two categories: (1) eligible costs ($3.45 million) clearly defined at present; (2) under-consideration costs ($2.9 million) pending finalization of sewer, water, and storm-water allocations among multiple developers in corridor.
• Performance milestones: Year 6 deadline for payroll and infrastructure targets; reimbursement amount declines 5% per month if milestones not met; by year 7, reimbursement authority lapses.
• Term: 7 years.

Vote Breakdown

• Final: Unanimous (6-0 voice vote; no individual roll call recorded by council members by name)
• Yes: All council members present
• No: None
• Abstentions / absences: None stated; all six council members spoke in favor.

Individual votes not stated in transcript, but voice vote was clearly unanimous.

Outcome & Next Steps

The council adopted Resolution 13158 unanimously. ASM clears the infrastructure agreement phase and proceeds to the Design Review Board hearing on October 3, 2024, at which time site-specific design, landscape, architectural, and coordination issues with the neighboring Optima development will be adjudicated. David Hovy Jr., president of Optima, flagged concerns about garage proximity and elevation changes in his public comments and indicated that detailed renderings of ASM's revised proposal would be helpful during ongoing negotiations. Both Hovy and Solange Whitehead indicated confidence that design issues would be resolved cooperatively; no conditions were imposed by the council on the resolution beyond the infrastructure and performance provisions already embedded in the agreement.

ASM will also pursue formal development approvals through the city's design-review process, though no rezoning is required.

Controversies & Context

The most significant unresolved issue is design coordination between ASM's facility and the adjacent Optima condominium project. David Hovy Jr. indicated that the garage location, elevation changes, tree sizes, and bicycle path alignments are under active negotiation and critical to financing Optima's second condominium building. However, Hovy's tone was constructive; he explicitly praised ASM's willingness to engage and characterized the projects as compatible. Council members Solange Whitehead and Jan Dubauskas also noted ASM's proactive cooperation on design matters and predicted smooth resolution at the DRB stage.

No other controversies were raised. The deal was presented as a consensus outcome of months of staff refinement and coordination. Mayor Ortega's closing remarks alluded to the historical role of State Trust Land proceeds in Arizona's education system, anchoring the project in a longer narrative of public benefit.

One notable procedural detail: Terry Kilgore, the presenting Economic Development Director, is in her new role at the city, and council members explicitly congratulated her on inheriting such a high-profile project.

Duration

• This item: Approximately 40 minutes (presentations, public comment, council discussion, vote).
• Total meeting: Approximately 50 minutes (included consent agenda, proclamation, roll call, and brief closing remarks).

Other Notable Items

No other substantive agenda items were debated. The council approved five consent-agenda items (routine approvals) in a unanimous voice vote. A Hispanic Heritage Month proclamation was read and city employees were recognized.

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