Arizona’s economy is seeing a shift as computers and computer chips become leading drivers of the state’s exports, according to a June 1 report from 12News Phoenix. Federal data shows that Arizona now exports nearly $9 billion in computer equipment annually, including components used in vehicles, appliances, and network infrastructure.
Semiconductors and other electronic components represent the second largest export category for the state, valued at more than $6 billion. Major industry players such as Intel and TSMC have established significant operations in Arizona, with TSMC undergoing rapid expansion. Amkor has also recently started construction on a new facility in Peoria.
Copper and metals remain important but now rank fourth among Arizona’s top exports. The other elements of the state’s traditional “five C’s”—copper, cattle, citrus, climate, and cotton—no longer appear among the top ten export categories.
Steve Zylstra, CEO of the Arizona Technology Council, said that recent growth in semiconductor manufacturing did not occur by chance. “After COVID was over, everybody sort of rethought their supply chain. So that resulted in more nearshoring and bringing manufacturing back to the United States. Arizona just is well positioned to take advantage of that,” Zylstra said.
Zylstra also said that factors such as tax incentives, affordable power costs, favorable weather conditions, and available land make Arizona attractive for technology companies looking to expand or relocate their operations. “When you combine the fact there’s still available land here to build facilities, and there’s great business climate, we’re the kind of place that’s going to attract those businesses,” he said.
The Arizona Technology Council projects an 8% growth rate for the state’s tech sector over the next five years.
