Arizona, home to a surging ecosystem of global corporate businesses, start-ups and high-tech talent, offers a robust portfolio of programs and resources supporting both large and emerging employers. The state’s abundance of skilled talent is ready to fill positions in advanced manufacturing, aerospace and defense, biotech, healthcare, digital media, high tech—just to name a few.
High-tech manufacturing, including semiconductors, electric vehicles, and batteries, is flourishing in Arizona, supporting the addition of thousands of new jobs through direct production and supply chain operations in recent years.
Over the past year, Arizona has seen several significant economic development projects that reflect its growing importance as a hub for technology, manufacturing, and infrastructure. Here are some notable projects and trends:
Semiconductor Manufacturing
Arizona leads the nation in semiconductor investment, supplier expansions and jobs. Since 2020, Arizona has won more than 40 semiconductor expansions, representing over $102 billion in capital investment and over 15,700 direct industry jobs. These projects span the entire ecosystem, including manufacturing, advanced packaging, research and development, equipment, supply chain, and workforce development.
Arizona made global headlines earlier this year as two semiconductor companies in Arizona were announced as leading recipients of the much-anticipated CHIPS Act funding.
Intel has been expanding its presence in Arizona with a major investment in its semiconductor manufacturing facilities. The company is investing billions in upgrading its plants and building new ones in Chandler, aiming to increase production capacity and advance semiconductor technology. In March, Intel and the U.S. Department of Commerce announced up to $8.5 billion in direct CHIPS Act funding, supporting Intel’s $34.5 billion investment in Arizona to date, and an additional 3,000 new jobs.
Just a few weeks later, Taiwan Semiconductor Manufacturing Company (TSMC) and the U.S. Department of Commerce announced up to $6.6 billion in direct CHIPS Act funding. In addition, TSMC announced plans to build a third semiconductor fab at TSMC Arizona, bringing TSMC’s total investment in Arizona to over $65 billion and creating more than 6,000 total jobs. This project is expected to bring substantial economic benefits to the state, including thousands of jobs and a boost to the local supply chain.
Mesa’s Manufacturing Hub
Mesa, Arizona, has been actively enhancing its economic development landscape in recent years, positioning itself as a growing hub for business, technology, and innovation. The city has seen significant investments in manufacturing, particularly in sectors such as aerospace, electronics, and advanced manufacturing. Companies like Boeing and Northrop Grumman have facilities in the area, bolstering the city’s industrial base. Here’s an overview of the key elements shaping Mesa’s economic development.
Also located in Mesa is Arizona State University’s Research Park which plays a crucial role in advancing research and development. It supports tech startups and innovation-driven businesses through partnerships and incubator programs.
Renewable Energy
The Salt River Project (SRP) is a major utility provider in Arizona that plays a significant role in the state’s energy landscape. Over the past year, SRP has been involved in several key energy projects and initiatives focused on sustainability, infrastructure, and innovation.
SRP has continued to invest in expanding its solar energy portfolio. This includes the development of large-scale solar farms and the integration of solar power into the grid to support its goal of increasing the share of renewable energy in its generation mix. SRP also offers community solar programs that allow customers to participate in solar energy generation without having to install panels on their own property. This initiative aims to make solar energy accessible to a broader segment of the population.
The Salt River Project has been investing in battery storage technology to enhance the reliability and efficiency of its renewable energy systems. These projects help manage the intermittency of solar and wind power by storing excess energy for use during periods of high demand.
The SRP is also supporting the growth of electric vehicles by investing in EV charging infrastructure. This includes expanding the availability of public charging stations and promoting the adoption of EVs among its customers.
Arizona has been advancing its renewable energy initiatives with new projects in hydrogen production and solar energy farms. These projects align with the state’s goals to enhance sustainability and reduce carbon emissions.
Why Arizona?
Arizona offers a favorable regulatory and tax environment. The state has competitive corporate tax rates, and its business regulations are generally considered less stringent compared to other states.
The state offers various incentives to attract businesses, including tax credits, grants, and other financial incentives. Local economic development agencies often provide support to new and expanding businesses.
Investments in workforce development have been a focus, with new programs and partnerships aimed at aligning educational outcomes with industry needs, especially in technology and advanced manufacturing sectors.
