Phoenix: TSMC and tech jobs transforming desert, city and economy Article originally posted on AZ Central on June 13, 2025 Northwest Phoenix, a once-vast expanse of desert scrub, has transformed into a hub of industrial development and employment growth in the city, making it the world’s next high-tech mecca. Huge companies, capitalizing on available land and a pro-business civic outlook, are building a giant new complex that produces the microscopic devices that power almost all modern electric products. The area boasts more industrial space under construction than anywhere else in Phoenix. The catalyst was the arrival of Taiwan Semiconductor Manufacturing Co. in 2020, after seven years of courtship by city and state officials. The giant producer of the tiny microchips has ratcheted up its investment in the area from an initial $12 billion to $165 billion. TSMC’s ongoing expansion was cited by President Donald Trump as signaling the type of domestic investment that his tariff policies aim to stimulate. TSMC’s growing presence, in turn, has encouraged suppliers to set up shop nearby, sparking more development, many new construction jobs and permanent employment. TSMC a game-changer for job growth in Phoenix TSMC could alter Phoenix’s long-term employment. Metro Phoenix has enjoyed substantial job growth in recent years, up 37.6% since 2005, reports the Arizona Office of Economic Opportunity. Arizona’s economy traditionally has been defined by the “five C’s” of copper, cattle, cotton, citrus and climate, with the latter spurring residential development and tourism. But that has changed in recent years, and that change is accelerating. “While mining and agriculture continue to contribute significantly to rural economies, metro Phoenix’s employment base now centers on health care, advanced manufacturing, financial services and technology,” said Doug Walls, chief economist at the Arizona Office of Economic Opportunity. “The perception that Arizona’s economy revolves primarily around these traditional sectors understates the diversified economy we’ve built, particularly in the Phoenix metro area.” Phoenix employment by sector The new Taiwan Semiconductor Manufacturing Co. complex in northwest Phoenix could reverse the long decline in electronics-manufacturing jobs relative to other industries that have seen more robust employment growth. No major sector has grown more rapidly than the 86.7% employment surge for hospitals, clinics, research facilities and other health-care organizations over the past two decades. For years, Banner Health has led the way as Arizona’s largest nongovernmental employer. Goods-producing industries have been much more sluggish, with employment up just 10% over the past two decades. Jobs tied to the manufacturing of computers and electronic products actually declined nearly 25% over that span — a trend the TSMC project promises to reverse. ‘A pivotal investment’ in Phoenix’s economy with ‘unheard of’ numbers “The TSMC semiconductor complex marks a pivotal investment for Arizona’s economy, serving as an anchor for an expanding advanced-manufacturing ecosystem,” Walls said. A mix of industrial, residential and retail development will surround the TSMC complex, adding jobs and billions of dollars in new investments.