PHOENIX, AZ (December 29, 2025) - With over $34 billion in new investment, nearly 28,000 projected new jobs, and major wins across semiconductors, aerospace, AI, broadband, and more, 2025 delivered a year of record-breaking growth for Arizona. Now, as economic momentum surges statewide and new technologies unlock unprecedented possibilities, Arizona is forging ahead. 

Watch Arizona's economic year in review below

“2025 was a transformative year for Arizona,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We celebrated historic investments, scaled workforce accelerators, and advanced next-generation infrastructure, creating real opportunity for communities statewide. Under Governor Hobbs’ leadership and with strong partnerships across industry and government, Arizona is forging ahead —and the world is taking notice.”

During calendar year 2025, the Arizona Commerce Authority and economic partners successfully won 90 competitive projects from companies that committed to creating 27,749 projected new jobs and investing over $34 billion in the state.

The ACA worked with companies statewide in calendar year 2025, with expansions taking place in Avondale, Benson, Bouse, Buckeye, Casa Grande, Chandler, Clarkdale, Cochise County, Coolidge, Eloy, Gila Bend, Gilbert, Glendale, Goodyear, Litchfield Park, Marana, Maricopa, Mesa, Peoria, Phoenix, Prescott, Scottsdale, Snowflake, Surprise, Tempe, Tolleson, Tucson, and Yuma.

Creating Economic Opportunities Statewide

Throughout the year, Arizona saw significant growth across advanced industries representing sectors including semiconductor, technology and AI, manufacturing, battery, aerospace and defense, bioscience, headquarters, and more happening statewide including:

• Amkor Technology in Peoria;
• Apex Power Conversion, Cyclic Materials, Gulfstream, Hadrian, Moses Lake Industries and XNRGY in Mesa;
• ASML, Eternity Technologies, Lucid, Mayo Clinic, and TSMC in Phoenix;
• Applied Materials and Brewer Science in Chandler;
• Busch Vacuum Solutions, Cognite and Quantum Computing Inc. in Tempe;
• GTI Energy in Goodyear, Nestle in Glendale, KPPC Advanced Chemicals and NRS Logistics in Casa Grande;
• And Ascent Aviation Services in Marana

Arizona also attracted projects across business and financial services, consumer products, offices, and more including:

• Dutch Bros., Kestra Holdings, LEGO, and RoviSys in Tempe;
• CC Patio and Kellwood Apparel in Phoenix;
• Komatsu and Strive Pharmacy in Mesa

America’s Semiconductor HQ

In October, thousands of global tech leaders gathered in Arizona for SEMICON West, setting attendance milestones and reinforcing Arizona’s status as America’s semiconductor HQ. Hosted in Arizona for the first time, the event broke records with a 60% surge in registrations and nearly 50% more exhibitors.

In addition, throughout the week of SEMICON West, the ACA, industry leaders and ecosystem partners celebrated groundbreakings, ribbon cuttings, and new partnerships that included Amkor’s groundbreaking of its $7 billion semiconductor advanced packaging and test campus in Peoria; the opening of Busch Vacuum Solutions’ Arizona Service Center in Tempe; the launch of the Materials-to-Fab Center, an R&D partnership between ASU, Applied Materials, and the ACA; the opening of Brewer Science’s new innovation center in Chandler; and the ribbon cutting for SEMIquest, a new interactive exhibit at the Arizona Science Center. 

Arizona ranked No.1 in the nation for semiconductors by  Business Facilities in its 2025 State Rankings Report. Arizona leads the nation in recent semiconductor investment, attracting over 60 industry expansions since 2020, representing more than $210 billion in announced investment and over 25,000 projected new jobs. The state is home to North America’s most advanced chip processing technology and pioneering R&D and workforce development initiatives in collaboration with universities and community colleges. 

Strengthening Arizona’s Workforce 

This year, the ACA, alongside Governor Hobbs, community colleges and industry partners celebrated milestones for Arizona’s workforce development initiatives, including four Future48 Workforce Accelerator events.

• February 2025: Governor Hobbs announced the Aerospace and defense-focused Future48 Workforce Accelerator at Chandler-Gilbert Community College in Mesa. The Accelerator will provide training in aviation mechanics, electrical and mechanical assembly, wiring and composites, and was developed in partnership with Maricopa County Community College District (MCCCD), and industry partners Boeing and Honeywell.
• February 2025: the ACA and Arizona Western College broke ground on the Future48 Workforce Accelerator for Advanced Technologies. Supported by a $3.6 million ACA investment, the 5,600-square-foot facility provides hands-on training in electrical technology, advanced manufacturing, broadband fiber optics and solar installation. Located at AWC’s Wellton campus, the facility expands access to workforce training in underserved regions and strengthens Arizona’s capacity to meet the talent demands of emerging industries.
• April 2025: In partnership with Central Arizona College, Pinal County, and LG Energy Solution, the ACA celebrated the grand opening of the Battery-focused Accelerator in Apache Junction. 
  The Accelerator is designed to meet the workforce needs of Arizona’s rapidly growing battery and energy storage sector, with a strong focus on hands-on training aligned with LG’s advanced manufacturing processes. The Accelerator serves as a key training pipeline for LG Energy Solution’s nearby facility, while expanding talent development opportunities across Pinal County.
• September 2025: Alongside Governor Hobbs and Mohave College, the ACA celebrated the grand opening of the Advanced Manufacturing Training Center, a Future48 Workforce Accelerator, in Kingman. The new 36,000-square-foot AMTC is training students in high-demand careers such as welding, HVAC, industrial maintenance, robotics, computer-aided drafting, and manufacturing fundamentals. 

Connecting All Arizonans

In December, Governor Hobbs announced a milestone in Arizona’s ongoing broadband efforts. The National Telecommunications and Information Administration (NTIA) approved Arizona’s Broadband Equity, Access, and Deployment (BEAD) Final Proposal — unlocking $967 million to expand broadband infrastructure across the state.

Arizona’s plan, developed and overseen by the ACA, outlines 70 project areas with roughly 160,000 eligible households and 1,256 underserved community anchor institutions such as schools, libraries, and hospitals. Representing $447 million in federal funding and $520 million in private-sector matching, the plan enables the installation of more than 7,709 miles of fiber optic technology, supporting roughly 5,000 jobs and connecting hundreds of thousands of Arizonans to reliable, affordable high-speed internet.  

In November, the Arizona State Broadband Office launched the Arizona Permit Finder. The first-in-the-nation interactive Permit Finder seeks to reduce regulatory barriers and accelerate the pace of broadband expansion by consolidating permitting requirements into a centralized source, ensuring Internet Service Providers (ISPs) and subgrant recipients have access to important agency and contact information. 

Accelerating Innovation

Arizona’s startup and innovation ecosystem saw significant activity and growth in 2025, with even more to come as major events take place in 2026.

In August, the Arizona Commerce Authority (ACA) announced 10 awardees for the Fall 2025 Arizona Innovation Challenge (AIC), Arizona’s premier startup pitch competition. The Fall 2025 cohort includes some of the state’s most promising Software as a Service (SaaS)/AI startups including Aduvo, DeepLook Medical, Legion Platforms, Loanscape, Ogiso, Prickly Pear Health, ProPlaintiff.ai, Rezliant, SaveNaturally, and Steerco.

Also in August, Governor Hobbs and the Arizona Commerce Authority, in partnership with the Arizona Venture Alliance, announced Arizona Tech Week, the state’s first-ever decentralized tech conference. The event will take place in locations across the state from April 6th-12th, 2026, and is estimated to attract thousands of participants, investors, startups, and influencers.

In December, Forbes announced Phoenix as the host city for the Forbes Under 30 Summit beginning in 2026, marking the start of a new multi-year chapter for the global gathering of young leaders, founders and innovators. The 2026 Summit will take place April 19-22 in locations throughout Phoenix and will be in partnership with the Arizona Commerce Authority. 

Supporting Small Businesses 

In July, the Arizona Commerce Authority and Arizona business leaders announced the launch of the Arizona Small Business Growth Coalition (SBGC), a statewide alliance of trusted small business providers committed to advancing Arizona’s economic vitality through entrepreneurship. Convened by the Arizona Commerce Authority, the coalition will foster alignment, collaboration, and collective actions to support small businesses across Arizona. The strategic goals of the SBGC within the next two years include: securing $50 million in small business grants, loans, and investments; helping 500 small businesses receive funding; and providing 5,000 Arizona small business assists.

Supporting Arizona Manufacturers

The Arizona Manufacturing Extension Partnership (AZ MEP) provides consulting services to small and medium-sized manufacturers across the state with a mission to make every Arizona manufacturer the most successful business it can be. In Fiscal Year 2025, the AZ MEP completed 199 separate client-specific projects with 102 manufacturers. Impacts included:

• 1,132 jobs created or retained
• $14,386,850 cost savings
• $80,552,644 new and retained sales
• $40,411,959 new client investments

Elevating Arizona’s International Presence

In 2025, Arizona expanded its international footprint, increasing its global competitiveness and deepening ties with key trading partners.

Throughout 2025, the ACA participated in multiple delegation visits to Taiwan, including joining Governor Hobbs in March as part of an Arizona delegation visit in March, where the delegation met with TSMC CEO C.C. Wei and executives at the company’s headquarters in Hsinchu, and a workforce-focused delegation visit in September, where the delegation attended SEMICON Taiwan, and visited the TSMC Newcomer Training Center in Taichung.

In June, Arizona hosted the U.S.-Mexico Semiconductor Collaboration Forum focused on semiconductor advancement between Arizona and Mexico. The Forum convened over 100 state and regional industry, government, and academic leaders in Arizona, the United States and Mexico. During the Forum, attendees discussed enhanced semiconductor collaboration opportunities, strengthening regional cooperation to advance innovation, expand supply chains, attract investment, and further collaborate on workforce development strategies.

In September, Governor Hobbs and the Arizona Commerce Authority announced the opening of a new Arizona Trade and Investment office in Japan. The new office, a part of the Arizona Commerce Authority, is located in Tokyo, Japan, and will serve as a platform to increase economic collaboration and foreign direct investment opportunities between Arizona and Japan, one of Arizona’s largest trading partners. 

In October, the Arizona Commerce Authority, Arizona State University, the City of Phoenix, and the Taiwan Digital Health Industry Development Association signed a Declaration of Collaboration focused on establishing and promoting the Taiwan AI Smart Health Showcase Center based in Arizona. In addition, attendees celebrated the opening of the Taiwan AI Smart Health Showroom at the Phoenix Bioscience Core, which featured 15 innovative Taiwan-based health care companies.

Forging Strategic Partnerships

In July, the ACA, in partnership with the Southwest Mission Acceleration Center (SW MAC) announced the launch of the Arizona Office of Defense Innovation (ODI), a new public-private partnership that will expand Arizona’s aerospace and defense leadership. Governor Hobbs and the Arizona Legislature established the Arizona Office of Defense Innovation through the recently enacted Fiscal Year 2026 budget. The Office will be housed within the ACA and serve as a critical hub to coordinate efforts between state agencies, defense contractors, academia, innovators, and the DoD.

Arizona Earns National Recognition

In recognition of yet another banner year for economic development wins, in June, Arizona received a prestigious “Gold Shovel” award from Area Development Magazine - marking the state’s fifth consecutive gold shovel. In addition, Area Development named TSMC’s third fab expansion as one of the “Manufacturing Projects of the Year.” In April 2024, TSMC announced plans to build a third leading-edge semiconductor fab in Phoenix. The company has since announced the addition of six more high-tech facilities in Arizona, including three additional fabs, two advanced packaging facilities, and a major R&D center, bringing the company’s total investment in Arizona to over $165 billion.

In May, Business Facilities magazine announced Arizona as a winner of its Economic Development Organization (EDO) Awards, marking the third year in a row that Arizona has been recognized for innovative economic development initiatives. Arizona was selected as one of 10 state winners for ConnectAllAZ, an initiative that furthers Arizona’s broadband expansion efforts to connect all Arizona households by 2030. The EDO awards recognize economic development organizations’ efforts to grow their communities through “initiatives and programs that are delivering results toward workforce development, job creation, rural economic development, quality of life, and more.”

Media Contact

Alyssa Tufts, Arizona Commerce Authority, [email protected]

About the Arizona Commerce Authority
The Arizona Commerce Authority (ACA) is the state's leading economic development organization with a streamlined mission to grow and strengthen Arizona's economy. The ACA uses a three-pronged approach to advance the overall economy: attract, expand, create - attract out-of-state companies to establish operations in Arizona; work with existing companies to expand their business in Arizona and beyond; and help entrepreneurs create new Arizona businesses in targeted industries. For more information, please visit azcommerce.com and follow the ACA on X @azcommerce.