INDUSTRY STRENGTHS
Arizona’s manufacturing strengths include semiconductors, aerospace and defense and electric vehicles. The state’s manufacturers power high tech devices, sustainable materials and medical devices.
Semiconductor manufacturers from around the world come to Arizona to develop innovations that power the next generation of devices. With a pro-business environment and competitive ecosystem, semiconductor manufacturers in Arizona produce technological breakthroughs that are shaping the future.
Business Facilities, 2025
Arizona is leading the charge on America's semiconductor resurgence. The state continues to remain no. 1 for semiconductor investment with over $205 billion invested since 2020. This includes TSMC's recent historic investment of $100 billion - the largest foreign direct investment in history. Arizona's semiconductor leaders span the entire ecosystem, including manufacturing, advanced packaging, research and development, equipment, supply chain and workforce development.
Optics technology crosses industry lines and is critical to many of Arizona’s manufacturing industries, such as precision missile guidance systems, medical imaging and automated and unmanned aerial vehicles. Optics and photonics manufacturing employment in Arizona increased by 60 percent from 2018 to 2023.
Lightcast, 2024
With an abundant supply of industry titans, natural resources, reliable energy and workforce, Arizona is positioned to be the hub for battery and energy storage manufacturing in the nation.
Lightcast, 2024
Arizona saw a 46 percent increase in employment in bioscience manufacturing from 2018 to 2023, which is the third-highest growth rate in the U.S. Bioscience manufacturing advances made in Arizona include new electromedical devices, implantable medical devices and pharmaceuticals. Medical device manufacturers in Arizona include BD, GE HealthCare, Medtronic, Gore and Stryker.
Companies in Arizona supply specialized composite materials to other industries, particularly to companies in the aerospace and defense industry, including Honeywell, Northrop Grumman Innovation Systems, Boeing and UTC Aerospace Systems. Hexcel in Coolidge manufactures composite materials used in commercial aircraft structures and interiors, defense aircraft, helicopters and other industrial applications. HJ3 Composite Technologies manufactures carbon fiber repair systems that fortify and protect structures against earthquakes, blasts and environmental damage.
Lightcast, 2024
PwC, 2025
Arizona’s soaring aerospace and defense industry is supported by its broad set of manufacturing. Arizona ranks fifth in the nation for employment in aerospace and defense manufacturing and is home to more than 230 A&D manufacturing establishments. Arizona is home to aerospace and defense industry giants. Raytheon Missile Systems, headquartered in Tucson, employs more than 12,000 people. Honeywell Aerospace, the world’s largest manufacturer of aircraft engines and avionics, is headquartered in Phoenix and employs more than 7,000 in Arizona. Boeing manufactures helicopters in Mesa and employs more than 4,800 people in the state. Arizona companies exported $5.9 billion worth of aerospace and defense products in 2023.
Automotive manufacturing is revving up in Arizona. With a rapidly expanding manufacturing industry, innovative suppliers and a collaborative ecosystem, the state is poised to be the next electric vehicle epicenter.