By Jessica Boehm | Axios
Phoenix is having a moment.
- Recent major investments in computer chip manufacturing and electric and autonomous vehicles have made it the overnight darling of the U.S. innovation elite.
Why it matters: The broad attention is showing the world what local leaders have spent the past half-century trying to prove: This desert city can be a major player in global tech and manufacturing.
State of play: Arizona has attracted more semiconductor investment since 2020 than any other U.S. state — driven mainly by Taiwan Semiconductor Manufacturing Co.’s $40 billion facilities in north Phoenix.
- Semiconductors are used in just about every electronic device — including electric and autonomous cars, fields in which Phoenix is also thriving.
Waymo has been testing its self-driving vehicles in metro Phoenix since 2017.
- It recently doubled its local ride-hailing service area to cover 180 square miles, the largest fully autonomous service area in the world.
- Five EV manufacturers have set up shop in Arizona since 2016, per the Arizona Commerce Authority.
How it happened: Government and business leaders pledged to diversify Phoenix’s construction-based economy after it collapsed during the 2008 housing crash.
- They formed the Arizona Commerce Authority, offered incentives and relaxed regulations to lure new companies.
Yes, but: Those moves were built on the back of decades of groundwork, strategic investments — and maybe some dumb luck too.
Flashback: Metro Phoenix was home to several U.S. Air Force and Navy training bases during World War II, which made it a natural fit for post-war military manufacturing.
- Motorola arrived in 1949, becoming the area’s first semiconductor facility.
- Intel followed, opening its first fabrication plant in the area in 1980.
- They attracted chemical suppliers, engineering outfits and other skilled manufacturing companies to metro Phoenix.
