Arizona is long past being a flyover state. In the last few years alone, Arizona has become a destination for companies around the world with an unmatched business climate, skilled workforce, world-class educational institutions, modern infrastructure and much more. The state’s global attractiveness is highlighted by transformational high-tech investments from industry-leading companies, with even more activity on the horizon.
In the past few years, the eyes of the world have been on Arizona as international companies announced transformational investments in the state. In 2020, Taiwan Semiconductor Manufacturing Company (TSMC), announced plans to build a new $12 billion semiconductor fab in Phoenix, fueling more semiconductor investment from Taiwan-based manufacturers and suppliers. In the last two years, Arizona has landed more than 30 semiconductor expansions – including many from Taiwan.
Arizona’s semiconductor industry continued gaining momentum in 2021 as global semiconductor leader Intel announced a historic $20 billion expansion to build two new fabs at its Ocotillo Campus in Chandler, creating 3,000 new jobs.
In 2022, TSMC announced an increase of its initial investment to a total of $40 billion, creating 4,500 total jobs, further solidifying Arizona’s position as a global leader for semiconductor manufacturing. In large part to Intel and TSMC’s announcements, Arizona leads the nation in semiconductor investments with more than $60 billion invested since 2020.
In addition, Arizona’s battery industry has also earned international attention, as LG Energy Solution (LGES), a South Korean battery manufacturer, announced plans to build a new battery manufacturing facility in Queen Creek, creating thousands of jobs. As Arizona’s battery industry continues to grow, in March 2023, LGES increased its investment to $5.5 billion to build a battery manufacturing complex in Queen Creek. With TSMC’s and LGES’ record investments, along with many others, Arizona’s global reputation is stronger than ever.
On the heels of back-to-back years of record-breaking international investments, Gov. Katie Hobbs led a delegation of state leaders on a trade mission to Taiwan and the Republic of Korea in September to continue strengthening economic ties and further showcase Arizona’s attractiveness as a destination for the world’s most advanced companies.
The trip included meetings with top government officials and the executives of semiconductor and battery companies, including TSMC in Taiwan and LG Energy Solution in the Republic of Korea.
“My No. 1 goal is to bring jobs and investments back to Arizona,” Hobbs said during the business trip in September.
In addition to strengthening economic relations, the delegation celebrated the openings of two new trade offices: The Arizona-Taiwan Trade and Investment Office in Taipei and the Arizona-Korea Trade and Investment Office in Seoul. The trade offices are managed by the Arizona Commerce Authority (ACA) to further expand foreign direct investments (FDI) in Arizona and increase economic collaboration between Arizona, Taiwan and the Republic of Korea.
“The Asia trade delegation was an incredible opportunity to strengthen our relationships with Taiwan and the Republic of Korea, and celebrate the official launch of our trade offices,” said Sandra Watson, president and CEO of the Arizona Commerce Authority. “With Arizona’s reputation as the premier destination to do business, we continue to attract global companies in high-tech industries such as advanced manufacturing and technology. We’re grateful to all companies around the globe that have invested in Arizona.”
Arizona has been leading the nation when it comes to foreign investments. Earlier this year, Gov. Hobbs and the ACA announced Arizona had landed expansion projects from 35 international companies in 2022, representing $31.954 billion in investment, making the state No. 1 in the nation for foreign direct investment (FDI) for the second consecutive year.
At the top of that FDI portfolio is TSMC’s advanced semiconductor facility under construction in north Phoenix, which represents a total $40 billion investment, the largest in state history.
“I’m proud to have TSMC as a partner as we continue to build our semiconductor ecosystem while creating good-paying jobs and businesses,” said Hobbs, who also met with TSMC Chairman Mark Liu during the September delegation.
The governor also attended U.S. Business Day, which brought together American and Taiwanese leaders to promote economic relations and trade, and she met with Taiwan President Tsai Ing-wen.
“Arizona and Taiwan’s partnership, rooted in our common values, is one of the most important in the world,” Hobbs said. “I look forward to building on our relationship and finding ways to create jobs, build businesses and grow together as we lead the world in advanced manufacturing.”
In addition, Arizona is focused on preparing the next generation of scientists and engineers. To bolster continued workforce development efforts, the delegation attended the signing of an agreement between the Arizona Science Center and the National Taiwan Science Education Center (NTSEC) in Taipei City. The partnership will create collaborations in STEM, specifically technology, semiconductor and microelectronics workforce development.
During the trip, the delegation also celebrated the opening of the Arizona-Korea Trade and Investment Office which, like its Taiwan counterpart, was created in 2022 to expand the state’s global competitiveness. The governor met with the Korean International Trade Association in Seoul and visited an LG Energy Solution battery factory.
Arizona’s most recent confirmation on the growth of its imports and exports came from the International Trade Administration. Phoenix’s Foreign-Trade Zone (FTZ) No. 75 was fifth in the nation last year for imports handled through its warehouse and distribution network. The report ranked Arizona No. 7 out of the top 25 states for trade activity in 2022.
Arizona’s strengths in international investments and trade contributed heavily to the state’s record-breaking year in economic growth. In fiscal year 2023, which ended June 30, the ACA and local economic development partners worked with global companies that committed to investing $40.73 billion in local communities, creating 24,246 new jobs.
It was a single-year record for capital investment, jobs creation and wages, surpassing the ACA’s goals for jobs and wages growth.
“We want to build on this momentum and continue to showcase Arizona’s strengths, highlighting the state as a premier global destination for business,” Watson said.
With high-tech investments, close collaboration between government, industry and academia, and existing industries, Arizona is poised to continue attracting global companies to advance the state’s economy for years to come.
To learn more about Arizona’s international presence, visit azcommerce.com/programs/international-trade/.