“Arizona’s largest city has, for a variety of reasons, become the epicenter for semiconductor manufacturing,” CNBC reported on Sunday, January 19, 2025 (read story here).
Taiwan Semiconductor alone, maker of highly advanced chips, plans to invest $65 billion in its facilities in Phoenix and environs. Other tech companies will follow.
Why Phoenix? An investing consultant specializing in the tech industry says cities that become tech hubs typically have four characteristics. “The first is a favorable business environment,” she says.
“The second really is that ecosystem of other companies.” Phoenix attracted Taiwan Semi by building a science and technology business park that will bring suppliers and smaller technology companies together.
“The next is really close proximity to a university that has a strong engineering program. And then finally it is that availability of talent.”
Phoenix has all of that. But what about scorching summer heat? Air conditioning. And water? Phoenix is a city of 5 million people plopped down in a desert. Colorado River water is limited and spoken for. Innumerable media stories speculate how Phoenix will cope with water shortages in the future.
The answer: Throw money at the problem. Lots and lots of money. (Read story here.)
Photo below: Taiwan Semiconductor will be to Phoenix what Boeing is to Seattle
