When people think of Phoenix, technology may not be the first thing that comes to mind. The city is known for its golf courses, Major League Baseball’s spring training, retirement appeal, and hot weather.
But over the decades it has been quietly growing into a hub of innovation. Arizona’s largest city has become a hub for semiconductor manufacturing and testing of self-driving cars and drones for a number of reasons.
“If we look at the cities that really end up being important technology hubs, we typically see four things, and Phoenix really has all of those,” said Anne Hoecker, global technology director. “The first is the enabling business environment. The second is the ecosystem of other companies. The second is the very close proximity to universities with strong engineering programs. And the last is the availability of talent.”
Tech companies have flocked to the city to take advantage of these benefits. British SemiconductorTaiwan Semiconductor Manufacturing Company (TSMC) is the largest of them.
TSMC produces the most advanced chips in the world, Commitment to invest $65 billion in greater Phoenix area. The chipmaker initially held discussions with Phoenix in 2016, when the company looked to grow its advanced chip manufacturing operations outside of Taiwan. To win the bid, the Greater Phoenix Economic Council spent three years envisioning a technology park that would meet the company’s needs. Once completed, the project is expected to bring about 62,000 jobs around TSMC (including TSMC).
“They’re basically replicating the tech park concept that was pioneered in Taiwan,” said Rick Cassidy, chairman of TSMC Arizona. “It solves a lot of problems for our smaller suppliers. They can actually rent the space and plug in the power ”
Self-driving cars are another hallmark of the city’s tech scene. Ubercruises and letterWaymo has tested all of its self-driving cars in the city. Bain & Company’s Houck said Phoenix’s infrastructure, gridded streets and stable weather make it the “best” place to launch these projects.
Arizona’s policies have always been welcoming of self-driving technology. Former Arizona Governor Doug Ducey issued several executive orders to reduce barriers to self-testing. Waymo began testing in Phoenix in 2017 and is the largest player in the market. The company’s Robotaxi service It currently operates 315 square miles in the city.
Drones are another technology that has put the city on the map. November, Amazon Received Regulators approve launch of Prime Air drone program Located in Tolleson, a suburb west of Phoenix. According to Amazon, the goal is to expand the program to 500 million deliveries per year. The company said it has delivered thousands of packages so far.
“This is about expansion in the U.S. and around the world,” said David Carbon, vice president and general manager of Amazon Prime Air, adding that more services will be launched in 2025. “
watch video CNBC’s Kate Rooney goes behind the scenes of Amazon’s cutting-edge drone business and explores how Phoenix became a tech hotspot.
