Arizona’s Economy Surges: Record Investments in High-Tech and Rural Wins

Arizona’s Economic Surge: High-Tech Investments and Rural Growth

PHOENIX, AZ (December 26, 2023) – Arizona has witnessed an extraordinary influx of investments in 2023, particularly in high-tech sectors, showcasing its robust economic growth.

The year was marked by significant advancements in workforce development, infrastructure, and rural business expansion, alongside thriving startup collaborations and supply chain improvements.

Explore Arizona’s economic year in review below

2023 represented another incredible year of unprecedented growth for Arizona’s economy, remarked Sandra Watson, President and CEO of the Arizona Commerce Authority. We are grateful to Governor Hobbs, and our many government, education, industry and innovation partners statewide who continue to work alongside us to grow and strengthen Arizona’s economy. We look forward to furthering our rapid momentum in the year ahead!

Business Development Milestones

The Arizona Commerce Authority (ACA), along with economic partners, secured over 95 competitive projects in 2023, with companies pledging to create more than 24,600 jobs and invest over $10.3 billion in the state. Expansion efforts spanned numerous cities including Avondale, Buckeye, Casa Grande, Chandler, and Tucson.

Key manufacturing projects were launched, with the state also advancing in technology, R&D, distribution, and HQ office sectors.

National Recognition and Rankings

In April, Arizona was ranked in the top 5 of “Best States For Business” by Chief Executive Magazine. The state also gained recognition as a top 5 state for innovation by the Consumer Technology Association in May.

Arizona’s efforts in economic development were honored with the inaugural “Economic Development Award” by Business Facilities in May. Additionally, the state received its fifth “Gold Shovel” award from Area Development Magazine in June, acknowledging its achievements in job creation and capital investment.

Maricopa County was recognized as the top county for talent attraction for the fourth year running by Lightcast.

Boosting the Semiconductor Industry

Strategic initiatives in 2023 bolstered Arizona’s semiconductor sector. SEMI announced that SEMICON West will be hosted in Phoenix in 2025, 2027, and 2029. Arizona State University, in collaboration with Applied Materials, launched a $270 million Materials-To-Fab Center in Tempe, with support from a $30 million ACA investment.

The University of Arizona expanded its Micro/Nano Fabrication Center in Tucson with a $35.5 million investment, enhancing semiconductor manufacturing and research capabilities. Governor Hobbs also introduced a Registered Apprenticeship Program to strengthen the semiconductor talent pipeline.

In December, the ACA allocated $17.5 million to ASU to expand semiconductor research and workforce training capabilities in Tempe.

Workforce Development and Innovation

In June, Governor Hobbs unveiled two Future48 Workforce Accelerators in partnership with Mohave Community College and Arizona Western College. These initiatives aim to enhance workforce training in rural areas.

Plug and Play accelerateAZ launched its Arizona office, initiating programs like the Advanced Manufacturing Accelerator program and the upcoming Sustainability Accelerator program.

The ACA also celebrated the 2023 Arizona Innovation Challenge, selecting ten companies from a pool of 100 applicants.

International Ventures and Small Business Support

In March, Arizona opened international trade offices in Taiwan and South Korea, following substantial investments from these countries. Arizona was ranked no. 1 in the nation for international investment in 2022.

Small businesses thrived with initiatives like the Super Bowl LVII Business Connect Program and the Small Business Boot Camp, which marked its third anniversary in April.

Infrastructure and Connectivity

Governor Hobbs announced a historic $993.1 million federal broadband grant in June to improve internet access across Arizona, the state’s largest investment in broadband infrastructure to date.