Innovation is thriving across the East Valley.
In a landscape long dominated by a handful of American tech hubs, a new contender is quietly rewriting the rules of where innovation thrives. Phoenix, once considered an underdog in the race for tech talent and corporate attention, is catching up fast.
According to CBRE’s 2024 Scoring Tech Talent report, Phoenix has broken into the top 20 tech markets in North America, propelled by a 17% increase in its tech workforce over the last five years. That brings the region’s tech talent total to over 108,000 workers, marking one of the most significant growth trajectories in the nation.
One factor in that job growth is the national attention Phoenix has attracted from corporate decision-makers. A recent survey by Site Selection magazine ranked Phoenix among the top 10 U.S. cities for corporate headquarters, tying with Memphis and San Diego. The city also cracked CBRE’s 2024 Top 30 Tech Hubs report, ranking among the top North American tech markets for office leasing activity and solidifying its place alongside longtime tech giants like San Francisco, Seattle and Austin.
What’s fueling this momentum? A combination of affordability, infrastructure, access to talent and a public-private ecosystem designed to support fast growth. As rising costs and workforce pressures challenge older tech markets, the Greater Phoenix area, also known as the East Valley, offers a compelling alternative: room and resources to grow.
The promise isn’t theoretical; the region is already drawing some of the biggest names in tech.
“After completion, around 30% of our 2-nanometer and more advanced capacity will be located in Arizona, creating an independent leading semiconductor manufacturing cluster in the U.S.”
— Dr. C.C. Wei, TSMC Chairman and CEO, speaking during an April 18 earning call of the “gigafab cluster” the company intends to develop in Greater Phoenix
TSMC Rolls On
In March, TSMC revealed plans to invest an additional $100 billion into its Phoenix facilities, pushing its total U.S. investment in Arizona to an astounding $165 billion. This marks the largest single foreign direct investment in U.S. history, underscoring the Taiwanese semiconductor giant’s unwavering commitment to bolstering America’s semiconductor production pipeline.
With this latest expansion, TSMC is set to build three new semiconductor fabrication plants (meaning six in all), two advanced packaging facilities, and a state-of-the-art R&D center. This massive investment follows the successful launch of TSMC’s first Arizona plant, which began volume production of 4-nanometer chips in late 2024. The $65 billion facility is expected to create 6,000 high-tech jobs directly and support another 10,000 jobs indirectly. The second phase of the project will begin production of 3-nanometer chips by 2028, with the third facility slated to start producing 2-nanometer or even more advanced chips by the end of the decade.
“Back in 2020, thanks to President Trump’s vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality,” said TSMC Chairman and CEO Dr. C.C. Wei, noting the importance of necessary government support and strong customer partnerships. “AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications.”
In the company’s Q1 earnings call on April 17, Wei provided more detail on TSMC Arizona’s progress and future.
“Our first fab in Arizona has already successfully entered high-volume production in Q4 ’24, utilizing N4 process technology, with a yield comparable to our fabs in Taiwan,” read an English translation of his earnings call statement. “The construction of our second fab, which will utilize the 3-nanometer process technologies, is already complete, and we are working on speeding up the volume production schedule, based on the strong AI-related demand from our customers.”
Apple is currently TSMC’s largest customer for nanometer chips produced at its Phoenix operations.
Photo courtesy of TSMC
That demand is coming from such customers as Apple, NVIDIA, AMD, Qualcomm and Broadcom, he explained.
“Our third and fourth fab will utilize N2 and A16 process technologies, and with the expectation of receiving all the necessary permits, is scheduled to begin construction later this year,” he said, though a construction labor shortage in Arizona is putting some pressure on the construction timeline. “Our fifth and sixth fab will use even more advanced technologies … Our expansion plan will enable TSMC to scale up to a gigafab cluster, to support the needs of our leading-edge customers in smartphone, AI, and HPC applications … After completion, around 30% of our 2-nanometer and more advanced capacity will be located in Arizona, creating an independent leading semiconductor manufacturing cluster in the U.S. It will also create greater economies of scale and help foster a more complete semiconductor supply chain ecosystem in the U.S.”
Mesa Gateway Airport has undergone significant expansion, including a new terminal, runway upgrades and more.
Photo: Getty Images
In response to a question from a JP Morgan analyst, Wei spoke to the potential of the new gigafab cluster to operate independently. “We need to establish a major R&D center in Arizona with about 1,000 engineers.” He said 1,000 engineers is not a small amount, though it pales in comparison to the 10,000 R&D personnel in TSMC. “But it’s a beginning, okay?” he said. “So we’ll do a lot more.”
Following TSMC’s major announcement, Apple has also reinforced its commitment to U.S. manufacturing, pledging to invest more than $500 billion throughout the country over the next four years.
As part of this new investment, Apple is doubling its U.S. Advanced Manufacturing Fund, which was created in 2017 to support world-class innovation and high-skilled manufacturing jobs across America. The company’s plans for this additional funding include a multibillion-dollar commitment to produce advanced silicon in TSMC’s Fab 21 facility in Arizona. The tech giant is already the largest customer at TSMC’s current operations in Phoenix.
While TSMC’s massive expansion may be the latest headline, it’s far from the first. Cities across the Greater Phoenix area have been celebrating win after win, fueling a region-wide surge in innovation and talent.
Mesa
In April 2024, XNRGY Climate Systems broke ground on a $300 million U.S. headquarters and manufacturing facility in Mesa, marking a major leap forward for the East Valley’s fast-growing innovation corridor. The Canada-based company, known for its sustainable HVAC technology, chose the Gateway East Airport Business Park as the launchpad for its ambitious expansion. The project, which will create over 900 new jobs, is more than a win for the city — it’s a signal that Mesa is becoming a serious player in the global clean tech and advanced manufacturing industries.
XNRGY’s commitment to sustainability is built into every square foot of its plans. The first phase of its Mesa facility will span 275,000 sq. ft. — larger than its existing headquarters in Montreal — and by the final buildout, the complex is expected to reach nearly 1 million sq. ft. Alongside its focus on research, development, and production, the company is actively partnering with local universities and trade schools to build a skilled workforce and root itself in the community. The move not only brings high-quality jobs to the region but aligns with Mesa’s broader vision to lead in innovation, technology and sustainability.
XNRGY’s arrival is a direct result of the groundwork laid at Gateway East Airport Business Park. Strategically located at Phoenix-Mesa Gateway Airport, the 270-acre site recently became the first in Arizona to earn a Gold designation under the Site Selectors Guild REDI Sites program, signaling that it’s primed for large-scale investment and rapid development. With streamlined infrastructure, fast-track permitting and seamless access to air and ground transportation, the park has become a magnet for forward-thinking companies looking to scale quickly.
That momentum is further amplified by the transformation of Mesa Gateway Airport, formerly Phoenix-Mesa Gateway Airport. Once a military airfield, the airport has evolved into a critical regional hub, with major upgrades underway to meet surging demand for both passenger and cargo traffic. A new 30,000-sq.-ft. concourse and a $45 million runway reconstruction are just the beginning. As the region’s economy expands, the airport is playing a growing role in connecting local businesses to national and international markets.
At the heart of this connectivity is SkyBridge Arizona, the country’s first and only air cargo hub to house both U.S. and Mexican customs agents. This $230 million facility streamlines international shipping by allowing goods to bypass lengthy customs processes in Mexico City and instead be pre-cleared in Mesa, arriving directly at their final destinations. It’s a game-changing development for companies involved in cross-border trade, and part of a 15-year plan to build out more than 3.8 million sq. ft. of mixed-use space at the site.
Scottsdale’s stunning desert cityscape
Photo: Getty Images
Scottsdale
A global leader in chipmaking equipment is planting deeper roots in the desert. In December 2023, ASM’s $300 million investment in Scottsdale underscored the region’s growing clout in the semiconductor industry — and its central role in powering innovation worldwide.
The Dutch company, which specializes in atomic layer deposition tools used in the most advanced semiconductor fabrication, is doubling down on its longtime Arizona presence. Its new North American headquarters will span 250,000 sq. ft. and sit on more than 20 acres, providing space for expanded R&D, pilot manufacturing, global training and software teams. For Scottsdale, this isn’t just another high-tech facility, it’s a signal that the city is becoming a major stage for deep tech innovation.
With plans to hire 500 additional engineers, researchers and technical staff over the next six years, ASM’s expansion is also a win for talent. It’s an opportunity magnet, drawing top minds from across the country and around the world. Scottsdale’s blend of livability, infrastructure and proximity to a broader regional tech ecosystem makes it an attractive destination for the kind of workforce that powers innovation at the frontier of physics and materials science.
But this isn’t just about headcount or square footage. The facility is being designed as a hub for sustainable innovation, with features like a reclaimed water system and renewable energy integration. ASM has committed to achieving LEED certification and aims to reuse more than 80% of its water on-site, an appropriate goal in a desert state. The commitment to sustainability doesn’t stop at the building’s walls. ASM has also announced partnerships with conservation organizations to support water restoration efforts in the Verde Valley and tree planting initiatives across the region. It’s a model for how global tech firms can invest not just in facilities, but in communities and ecosystems.
With this move, Scottsdale joins a growing list of Arizona cities shaping the future of the semiconductor world, not as satellites to Phoenix, but as distinct contributors to a broader innovation engine.
Chandler is the fourth most populous city in Arizona, boasting a population of 280,167 as of 2023.
Photo: Getty Images
Chandler
With the announcement of $8.5 billion in federal funding and $11 billion in loans to Intel’s expanding complex under the CHIPS and Science Act, Chandler is no longer just a player in the semiconductor industry, it’s an emerging powerhouse. This funding will allow Intel to upgrade existing facilities and construct two new “leading-edge” fabs at its campus in Chandler, transforming it into the largest chipmaking site in the U.S. when completed in late 2025.
Intel’s expansion is expected to generate 3,000 permanent manufacturing jobs and 7,000 construction jobs, all while helping to reverse the country’s reliance on overseas chip production. Currently, the U.S. produces only 12% of the world’s semiconductors, while consuming nearly half.
For Chandler, the project reinforces a decades-long partnership. Intel and the city have worked together for 45 years, building the infrastructure, talent pipeline and regulatory environment needed to support some of the most complex manufacturing processes in the world.
But the Intel project is only part of Chandler’s broader success. Today, Chandler is home to over 300 high-tech manufacturing companies employing nearly 28,000 workers, with manufacturing jobs accounting for a higher percentage of employment than any other major city in the Valley.
Greater Phoenix Growing Greater
Population of approximately
5 million people.
— U.S. Census
Maricopa County was No.1 for Population Growth in U.S.
— U.S. Census, 2023
The region is expected to see 0.9% projected annual population growth from 2024-2029 (national projection: 0.4%)
— Esri, 2024
Maricopa County, No.1 Market for Talent Attraction
— Lightcast, 2023
Approximately 601,800 jobs were added between 2013 and 2023.
— CBRE 2024 Metro Phoenix Market Overview
In addition to semiconductor dominance, the city’s tech infrastructure is expanding in other critical ways. On June 27, 2024, Chandler City Council voted to approve the expansion of the Frye Data Center — a 150,000-sq.-ft. campus owned by CBRE Investment Management. Located in the city’s Price Corridor, the site is set to grow by an additional 243,000 sq. ft., more than doubling its footprint. The vote followed a development agreement, rezoning and preliminary plan approval, and passed through the council’s consent agenda without discussion.
As global demand for chips and cloud storage continues to surge, Chandler is proving that a mid-sized city with the right strategy and partnerships is the perfect landing zone for influential projects.
The Mill Avenue Bridge is a defining feature of downtown Tempe.
Photo: Getty Images
Tempe
Just a 15-minute drive from downtown Phoenix, Tempe is quickly distinguishing itself as a rising power in the region’s tech economy, with a steady stream of high-impact investments and relocations reshaping the city.
Cognite’s recent move to downtown is the latest proof. The Norway-based AI software company isn’t just moving its U.S. headquarters to Tempe, it’s making the Valley the home of its international headquarters.
Specializing in industrial AI software, Cognite develops platforms that help high-data-volume companies streamline operations and boost efficiency. The Oslo-founded company is moving its top leadership, engineering, R&D and strategic teams into a 30,000-sq.-ft. space in the Hayden Ferry Lakeside complex.
The relocation brings more than office space. Cognite’s new headquarters will create roughly 110 new jobs locally, with an additional 40 senior executives transferring from its previous hubs in Oslo and Austin. With no manufacturing footprint, the company is focused entirely on cloud-based innovation, placing an even greater emphasis on talent, collaboration and proximity to other major tech players. Tempe’s location, resources and innovation ecosystem made it the natural landing spot.
Tempe is also putting itself on the map in the semiconductor industry. The city was recently selected as one of three U.S. sites to host a CHIPS for America facility operated by Natcast. The site will host both the National Semiconductor Technology Center (NSTC) and the National Advanced Packaging Manufacturing Program (NAPMP), including a cutting-edge Prototyping and Piloting Facility (PPF). The PPF will allow researchers and private sector partners to test advanced materials, devices and packaging technologies at scale, filling a critical gap between laboratory discovery and commercial production.
“A strong research and development ecosystem is essential to ensuring the United States remains at the forefront of semiconductor innovation,” said former U.S. Secretary of Commerce Gina Raimondo in a January 2025 press release. “Arizona has long been a hub for technological progress, and this new facility will strengthen our domestic supply chain, drive advanced manufacturing breakthroughs and secure America’s leadership in this critical industry. Thanks to the bipartisan CHIPS and Science Act, combined with the other two CHIPS for America R&D flagship facilities, we will help bring American innovations to the global market, further securing our national and economic security.”
The new facility, located at Arizona State University (ASU) Research Park in south Tempe, is expected to become operational in 2028 and generate hundreds of jobs and billions of dollars in long-term investment.
Scottsdale-based Axon in April 2024 introduced Draft One, a software product that employs generative AI to quickly draft high-quality police report narratives based on auto-transcribed body-worn camera audio (which then require human officer review and approval).
Photo courtesy of Axon
New Law Turns NIMBY to YIMBY
Plenty of communities fight to retain a major employer’s headquarters. Very few employers have to mount the fight themselves.
That’s what happened in Scottsdale when law enforcement technology manufacturer Axon’s world headquarters plan, approved by the Scottsdale City Council in November, ran into opposition and a voter referendum petition that Axon Founder and CEO Rick Smith said was led by “a California labor union and a few washed-up politicians.” A January groundbreaking was canceled by the maker of tasers and other equipment.
By the end of January, a petition from Taxpayers Against Awful Apartment Zoning Exemptions (TAAAZE) with over 19,000 signatures had been certified, enabling the referendum to be placed on the 2026 ballot. The group, which received assistance from California union organization Unite Here and its Worker Power arm in Arizona, opposed the project ostensibly over housing density and traffic concerns. Worker Power previously (and successfully) opposed arena development plans from the NHL’s Arizona Coyotes, who relocated to Salt Lake City last year.
The company’s “Save Arizona’s Future” campaign included a fully developed website, an array of videos, testimonials and backgrounders, and its own petition to support passage of SB1543, a measure that Smith said, “allows qualifying companies to build campuses — including office space, housing, and amenities — without getting bogged down in red tape.” Axon’s 44-acre campus plan features workforce housing components in a community where the average home value has gone from around $500,000 in January 2019 to over $848,000 in late April 2025, according to Zillow. The new HQ aims to add more than 2,000 new jobs in the community where Axon was founded more than 30 years ago.
On April 18, Arizona Governor Katie Hobbs signed the measure into law. Specifically, the measure stipulates that any city with a population between 200,000 and 500,000 can allow hotel or multifamily residential development as ancillary uses for an international headquarters project in a light industrial zoning district without the ancillary development having to go through a separate application process that requires a public hearing. The HQ has to employ at least 1,000 people and pay them an average wage of at least 125% of the county median wage.
The legislation also states that the ancillary use is allowed if at least 30% of the multifamily housing units are occupied by the international HQ company’s employees or by police officers, firefighters, teachers, veterans or health care workers who work within five miles of the HQ or who are families of HQ employees. The law further stipulates that no municipality may “unreasonably withhold a building permit” or delay an inspection as long as the number of multifamily residential units is within a ratio of 27 units per gross acre of the entire HQ campus, and that complementary retail and restaurant development shall be allowed within the campus.
Asked for comment, the company sent Site Selection a statement from Axon Founder and CEO Rick Smith: “Today marks a defining moment for Axon, for Scottsdale and for the state of Arizona,” he said. “I am incredibly grateful to Gov. Katie Hobbs for signing SB1543 into law, and to the many Arizona legislators, business leaders and community members who stood behind this important measure… SB1543 is more than a single company’s success story — it’s a bold step forward for Arizona’s economy. This legislation ensures that Arizona remains competitive in attracting high-impact global headquarters projects, providing the tools needed to create high-wage jobs and drive innovation at scale.”
“This measure also delivers real solutions to one of Arizona’s most pressing challenges: the housing supply crisis,” Smith continued. “By leveling the playing field and allowing companies moving to Arizona to build housing for their employees, SB1543 supports not just Axon team members, but also teachers, public safety professionals and working families across the Valley who deserve access to attainable housing near where they work.”
Axon’s career web page at press time showed 356 job openings around the world, 64 of them in Scottsdale, with healthy numbers also in such locations as Boston, Seattle, Denver, Atlanta, London and Ho Chi Minh City. The company plans to increase its Arizona workforce to more than 5,500 high-tech jobs. —Adam Bruns
Downtown Scottsdale with the McDowell Mountain range in the background
Photo by DaveI5957: Getty Images
