Semiconductor boom drive massive AZ economic development growth

Article originally posted on Phoenix Business Journal on July 23, 2026

Driven largely by semiconductor firms going all in on Arizona, the past 12 months were the most successful for economic development in state history.

That’s according to the latest fiscal year annual report from the Arizona Commerce Authority, which shows that companies announced plans to invest over $109 billion in new projects and other economic development activity in the state that resulted in some 26,225 projected new jobs created from July 2025 through June of this year.

The figures are record-setting. In the previous fiscal year, capital investment was around $31 billion, resulting in about 24,000 projected new jobs.

And, if the ACA’s pipeline of potential new business is any indication, the economic development hits could keep coming.

“We continue to see strong momentum across advanced industries,” Alyssa Tufts, ACA’s vice president of public relations, said. “The ACA currently has 483 active projects in our pipeline. These projects represent 122,323 projected new jobs and more than $104 billion in total investment.

The manufacturing sector accounts for 79% of all potential projects in the ACA’s pipeline, as well as 82% of jobs and 72% of capital investment.

The largest investments in the past year undoubtedly came from semiconductor firms, as Taiwan Semiconductor Manufacturing Company builds out its massive chipmaking plant in north Phoenix. Just last week TSMC announced an additional $100 billion investment in its Arizona plant, bringing the total investment now to a whopping $265 billion.

In turn, TSMC’s arrival in the Valley is driving other firms that supply it with equipment, chemicals and other materials and services needed to make chips to double down in the state as well. Economic development officials have also said that having two competing airlines now offering regularly scheduled flights from Phoenix Sky Harbor International Airport to Taiwan has also helped facilitate this investment.

“It seems like every other day we’re hearing some kind of semiconductor-related announcement or expansion,” Tufts said.

Indeed, the Valley’s latest semiconductor supplier investment was tracked earlier this week by the Business Journal, with Uangyih Industrial Company investing $20 million to acquire an industrial building in Surprise.

Amkor, TSMC provide one-two semiconductor punch

Another key project is Amkor’s chip packaging and testing facility it is building out in Peoria, west of the TSMC campus. In October the Tempe-based firm announced it was boosting its investment from an initial $2 billion to $7 billion to build out that campus.

Other semiconductor-related moves in the past year include Netherlands-based ASML opening a semiconductor engineer training facility near Sky Harbor International Airport. It’s the only facility of its kind in North America and is equipped to train 1,000 engineers annually.

Applied Materials Inc., in partnership with Arizona State University, also opened a $270 million semiconductor research, development and prototyping facility in Chandler.

And further south in Casa Grande, KPCC Advanced Chemicals Inc., a U.S. subsidiary of the Kanto Group, broke ground on a $500 million manufacturing facility where it will produce chemicals used in semiconductor fabrication.

“With Arizona’s thriving industry clusters, unmatched business climate, talented workforce, top-tier education, and robust innovation ecosystem, our state continues to attract global leaders – expanding economic opportunity and reinforcing Arizona’s position as premier destination for business,” said ACA President and CEO Sandra Watson.

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