By Yadira Gonzalez
Chandler, one of the fastest growing towns not only in Maricopa County, but in all of Arizona, is a 21st century company town. Intel, by far the town’s largest employer, is behind much of that growth.
Since beginning its Arizona operations in 1980, Intel has steadily expanded its Ocotillo campus, which now boasts four semiconductor fabrication plants, or fabs, that are essential to producing the microchips that power everything from phones to laptops. The company employs 12,000 individuals in Chandler alone, over twice as many as Chandler’s second largest employer, Wells Fargo, which employs 5,500 individuals.
Last September, Intel CEO Pat Gelsinger announced a $20 billion investment towards the construction of two more semiconductor plants, Fab 52 and Fab 62, on the Ocotillo campus, which will bring 3,000 more jobs to Chandler. The deal, which would bring Intel’s total investment in Arizona to $50 billion, is expected to be completed in 2024.
At the same time, companies like Taiwan Semiconductor Manufacturing Company and NXP Semiconductors also are expected to expand in Maricopa County in the coming years.
As Intel and its competitors continue to grow, towns like Chandler have to manage the environmental and socio-economic effects of this expansion.
Microchip production depends on abundant quantities of ultra-pure water. A single fab uses 2-to-4 million gallons of water daily, according to water-use management company Sustainable Water.
Despite Arizona’s megadrought, Phoenix has a robust water portfolio, meaning it has several sources of water. The Salt River Project and the Central Arizona Project provide most of Phoenix’s supply, which is in “good shape,” according to the City of Phoenix’s official website.
Still, Chandler officials, like John Knudson, the Public Works and Utilities Director, remain cautious of where water is allocated and how Intel’s growth would impact jobs and housing, and whether land and water would be used responsibly. “Because the company was coming with a large investment, high value to the city, and it fit the city’s goal for growth, that water was assigned to Intel,” said Knudson, noting that the company’s contributions to the city outweigh potential drawbacks.
To mitigate its vast use of water, Intel operates a water reclamation facility that recycles 90 percent of the water it uses. Sarah Porter, the director at Arizona State University’s Kyl Center for Water Policy at the Morrison Institute for Public Policy, lauds Intel’s endeavors as being conscientious about water resources.
“I am very happy to see the leadership that big corporations are showing in thinking about the use of water,” Porter said.
Responsible use of the water and land on the Ocotillo campus has a direct impact on neighboring communities such as a nearby retirement community, the Gila River Indian Community to the west, as well as the surrounding suburbs. Jennifer Sanchez, the Arizona community affairs manager for Intel, said the company has been working directly with the communities “in order to help be a better neighbor.”
“There are 55 backyards that touch Intel,” Sanchez said. “We do the best that we can to be listening to neighbors and keep them posted.”
One recent concern raised by those who live in the area were unsightly new power lines at the Ocotillo plant. In response to complaints, Intel buried its power lines underground, out of sight.
Intel also has offered resources for students, as more employees move into the neighborhood and enroll their children in local schools. In January, Intel partnered with Dell and the Chandler Unified School District to donate computers to Chandler High School, a school where 71 percent of students are minorities and 44 percent are economically disadvantaged.
But some consequences of growth aren’t easily mitigated. In the past year, the Phoenix-metro area had one of the highest increases in housing prices across the country, driven largely by new residents coming from out of state, looking for tech jobs, as well as insufficient new construction, according to Research Analyst Ashlee Tziganuk from the Morrison Institute at ASU.
Chandler, which values the economic benefits that Intel offers, has prioritized business development in some areas over new housing. “These are the employment corridors that we aggressively protect from residential encroachment,” said Micah Miranda, Chandler’s economic development director.
The relatively well-paid tech workers who come to Chandler to work at companies like Intel might not balk at rising real estate prices. But it is already leaving long-time residents in search of affordable housing.
In the coming years, how well Chandler balances the needs of Intel and its growing workforce against those of the rest of the community may be its biggest test yet.