Phoenix: From golf paradise to a thriving tech hub
Once best known for its golf courses, Major League Baseball spring training, warm climate, and popularity among retirees, Phoenix, Arizona, is rapidly reinventing itself. The city is now emerging as a key technology hub, drawing major investments in semiconductors, autonomous vehicles, and drone logistics.
According to Anne Hoecker, a global technology expert at Bain & Company, cities that evolve into major innovation centers typically share four critical traits—all of which Phoenix possesses:
1. Pro-business policies that encourage companies to set up operations.
2. A thriving innovation ecosystem that fosters collaboration and technological advancement.
3. Strong academic institutions such as Arizona State University, known for its high-ranking engineering programs.
4. A skilled workforce capable of sustaining rapid technological growth.
These advantages have helped Phoenix attract major tech players, including semiconductor giant TSMC (Taiwan Semiconductor Manufacturing Company).
TSMC, the world's leading chip manufacturer, is making a $65 billion investment in the Phoenix metropolitan area. Discussions with local leaders began in 2016 when the company sought to expand beyond Taiwan.
To support this initiative, the Greater Phoenix Economic Council spent three years developing a high-tech business park, tailored to meet the needs of the semiconductor industry. This massive project is expected to create around 62,000 direct and indirect jobs, significantly boosting the local economy.
According to Rick Cassidy, president of TSMC Arizona, the company is following the tech park model used in Taiwan, where suppliers and manufacturers operate in close proximity, reducing costs and streamlining production.
Phoenix has also positioned itself as a prime testing ground for autonomous vehicles. Companies like Waymo (a subsidiary of Alphabet/Google), Cruise, and Uber have all chosen the city to deploy their self-driving car programs.
The region’s structured road system, predictable weather, and modern infrastructure make it an ideal environment for testing autonomous mobility solutions.
Additionally, Arizona’s pro-innovation regulatory approach has played a significant role. Former Governor Doug Ducey actively supported self-driving technology by issuing executive orders to minimize legal barriers. As a result, Waymo launched its pilot program in Phoenix in 2017. Today, its robotaxi service covers a 315-square-mile area, making it a leader in the sector.
Phoenix is also at the forefront of drone-powered deliveries, further cementing its reputation as a tech-driven city. Amazon, for instance, has obtained regulatory approval to introduce its Prime Air drone delivery service in Tolleson, a suburb west of Phoenix.
The company’s long-term goal is to complete 500 million drone deliveries per year, streamlining logistics and revolutionizing last-mile delivery. Thousands of successful test deliveries have already been made, showcasing the potential of this technology.
“Our ambition is to scale this model nationwide and globally. This is just the beginning,” said David Carbon, vice president of Amazon Prime Air.
Fueled by government incentives, world-class infrastructure, and substantial private-sector investment, Phoenix is rapidly transforming from a traditional Sun Belt city into a national leader in technology and innovation.
With booming industries in semiconductor manufacturing, autonomous mobility, and drone logistics, Phoenix is proving that its future lies far beyond golf courses and warm weather—it’s shaping the next era of technological advancements.
