High-tech industries experienced historic investments along with victories for small businesses and rural communities.
PHOENIX, AZ (December 26, 2023) โ In 2023, Arizona continued to attract record investments as high-tech industries emerged.
The year also saw significant achievements in workforce development, infrastructure improvements, startup collaborations, supply chain improvements, rural business expansions and more.
See Arizona's economic year summary below
โ2023 represented another incredible year of unprecedented growth for Arizona's economy,โ said Sandra Watson, president and CEO of the Arizona Commerce Authority. โWe are grateful to Governor Hobbs and our many government, education, industry and innovation partners across the state who continue to work alongside us to grow and strengthen Arizona's economy. We look forward to continuing our rapid momentum over the next year!
Below are the highlights for 2023:
Business development
During calendar year 2023, the Arizona Commerce Authority (ACA) and its economic partners successfully won more than 95 competitive projects from companies that committed to creating more than 24,600 projected new jobs while investing more than $10.3 billion in the state.
ACA worked with businesses across the state in calendar year 2023, with expansions in Avondale, Buckeye, Bullhead City, Casa Grande, Chandler, El Mirage, Eloy, Gila Bend, Gilbert, Glendale, Goodyear, Green Valley, Hayden, Litchfield . Park, Marana, Mesa, Parker, Peoria, Phoenix, Pima, Queen Creek, San Luis, Scottsdale, Sierra Vista, Safford, Surprise, Tacna, Tempe, Tolleson, Tucson, Winslow, Yuma and more.
Throughout the year, Arizona saw major manufacturing projects across the state, including:
Arizona also continued to grow in various industries such as technology, research and development, distribution and warehousing, headquarters and more, including:
Get the best national rankings
In April, Arizona ranked top 5 of the "Best states to do business" by Director Magazine and in May, Arizona was recognized as The 5 best states for innovation.according to the latest โinnovation scorecardโ report from the Consumer Technology Association (CTA).
In May, the Arizona Commerce Authority was recognized as one of the four winners of the inauguration of the โEconomic Development Awardโ awarded by Business facilities. The award recognizes the community's efforts to attract โunprecedented projects and create new pockets of economic growth.โ
In June, Arizona was award-winning his fifth prestigious โGold Shovelโ award from Area development Magazine, recognizing the state's โsuccess in terms of new job creation and business capital investment in 2022. Additionally, TSMC's $40 billion investment to build two semiconductor factories in Phoenix was named one of 15 manufacturing of the yearโ.
And in December, Maricopa County classified no. 1 for attracting talent in the Talent Attraction Dashboard published by Lightcast, a global leader in labor market analysis, for the fourth consecutive year. Arizona also ranked in the top three in job growth and in the top five in competitiveness.
Arizona Semiconductor Industry Advancement
Key actions throughout the year boosted Arizona's semiconductor leadership, including strategic educational partnerships and major projects.
In January SEMI Announced that SEMICON West, the nation's premier semiconductor exhibition and conference, will be held in Phoenix in 2025, 2027 and 2029 after being held in California for more than 50 years.
In July, Arizona State University (ASU) and Applied Materials Announced plans to create a $270 million Materials to Manufacturing Facility (MTF) in Tempe. The MTF Center, a shared research, development and prototyping facility, is supported by a $30 million investment from the ACA to help advance the state's semiconductor industry and will accelerate semiconductor innovation at ASU and across the state .
In November, the University of Arizona (UArizona) and the ACA Announced an expansion of the University's Micro/Nano Manufacturing Center (MNFC) in Tucson. The expansion of the MNFC, a clean room facility that supports manufacturing and research efforts involving semiconductors, computer chips, optical devices and quantum computing systems, is supported by a $35.5 million investment from the ACA. MNFC's expansion will also include additional training efforts to continue growing the state's skilled workforce.
In November, Governor Hobbs announced key actions to strengthen Arizona's semiconductor talent pipeline. The initiatives include a first-of-its-kind initiative. Registered Apprenticeship Program, a partnership between ACA, OEO, DES and NXP, an advanced semiconductor manufacturer that operates two factories in Chandler. The company's program will begin with the industrial manufacturing technician occupation and will explore additional occupations in the future. In November, Governor Hobbs also Announced a semiconductor-focused Future48 workforce accelerator located in Maricopa County.
In December, the ACA Announced a $17.5 million investment in ASU to expand Arizona's advanced semiconductor manufacturing capabilities. The expansion will enhance Arizona's wafer-level packaging R&D and workforce training capabilities and drive the creation of a GaN (gallium nitride) research and manufacturing ecosystem in the state. ASU will allocate the funds to purchase equipment to enhance the capabilities of ASU's MacroTechnology Works (MTW) โโin Tempe. The expansion will also include workforce development initiatives such as internships and joint university research, and next-generation GaN research development for 6G in partnership with NXP Semiconductors in Chandler.
Investing in Arizona's workforce
Arizona continued to advance innovative partnerships to further strengthen the state's already strong workforce.
In June, Governor Hobbs Announced the first two of up to six Future48 workforce accelerators. The rural workforce accelerators represent a partnership with Mohave Community College in Kingman and Arizona Western College in Yuma.
Support the success of startups and promote innovation
In March, Plug and Play accelerates AZ Announced had selected Arizona for its new location. In April, Plug and PlayaccelerateAZ celebrated the launch of the Arizona office.
This year, Plug and Play accelerateAZ launched two programs: the Advanced Manufacturing Accelerator Program, which selected two cohorts of 26 startups after launching in April. In December, Plug and Play accelerates AZ Announced the Sustainability Accelerator program launching in spring 2024. The Sustainability program will support the growth of Arizona startups in areas including renewable energy, water resiliency, sustainable mining, circular materials and carbon neutrality.
In December, the ACA Announced that 10 companies from a pool of 100 applicants were selected as winners of the 2023 Arizona Innovation Challenge (AIC). Since 2011, the ACA has selected 130 AIC winners from more than 2,700 applicants, representing a combined portfolio value of more of 2500 million dollars.
Advancing Arizona's Global Competitiveness
In March, Governor Hobbs Announced the opening of two international trade and investment offices in Taiwan and the Republic of Korea. Offices in Taipei, Taiwan and Seoul, South Korea, serve as platforms to increase economic collaboration and foreign direct investment opportunities between Arizona and both countries.
The office openings were announced after Arizona secured major investments from both countries, including Taiwan-based TSMC. Investment of 40 billion dollars building two factories in Phoenix, creating 4,500 jobs in total, and South Korea-based LG Energy Solution, which is investing 5.5 billion dollars establish a battery manufacturing complex in Queen Creek, creating thousands of jobs.
Also in March, Arizona classified no. 1 in the nation in 2022 for international investment. In 2022, Arizona attracted expansion projects from 35 international companies, representing $31. 95 billion in investment (FDI).
Supporting small businesses
In February, during Super Bowl LVII in Arizona, companies that were part of the Super Bowl LVII Business Connect Program, a partnership between the NFL and the Host Committee, received 246 contracts for a total of 11.5 million dollars.
April marked the 3rd anniversary from the Small Business Boot Camp, a first-of-its-kind program that connects entrepreneurs and small business leaders with local experts to provide support, guidance and resources. Since launching on April 27, 2020, the Small Business Boot Camp has held over 300 sessions with over 17,000 attendees representing all 15 Arizona counties.
Connecting more of Arizona
In June, Governor Hobbs Announced Arizona received a $993.1 million federal broadband grant to help build infrastructure and deploy technology, the largest investment in broadband in state history. Arizona's Broadband, Equity, Access and Deployment (BEAD) Program aims to reduce barriers or obstacles for Internet service providers, while taking advantage of federal partnership opportunities. The record-breaking grant builds on years of focused efforts to ensure high-speed, quality Internet access for all Arizonans.
Read more about Arizona's economic boost at azcommerce.com.
Media contact
Alyssa Tufts, Arizona Commerce Authority, [emailย protected]
About the Arizona Commerce Authority
The Arizona Commerce Authority (ACA) is the state's premier economic development organization with the streamlined mission of growing and strengthening Arizona's economy. The ACA uses a three-pronged approach to advance the overall economy: attract, expand, create - attract out-of-state businesses to establish operations in Arizona; work with existing companies to expand their businesses in Arizona and beyond; and help entrepreneurs create new businesses in Arizona in specific industries. For more information please visit azcommerce.com and follow the ACA on Twitter @azcomercio.
