CBRE Report: Phoenix Semiconductor Growth Reshaping Metro
PHOENIX (October 7, 2025) — CBRE’s new Semiconductor Growth: Reshaping Metro Phoenix 2025 report, released just ahead of SEMICON West in Phoenix (Oct. 7 -9th), provides a detailed look at how the Valley has emerged as the epicenter of America’s semiconductor resurgence. With over $205 billion in announced capital investment and more than 16,000 new jobs since 2020, Arizona now leads the nation in semiconductor expansion projects — reshaping not only its economic landscape but also its workforce, education system, and physical development patterns.
A 70-Year Foundation for Innovation
Arizona’s role in semiconductor manufacturing dates back to Motorola’s 1940s-era operations and Intel’s establishment in Chandler in 1979. Today, Taiwan Semiconductor Manufacturing Company’s (TSMC) 1,100-acre North Phoenix campus, along with a cascade of supplier and R&D investments, has cemented the region as the “Silicon Desert.” The state’s appeal lies in its business-friendly policies, affordable operating costs, and resilience from natural disasters — all paired with a cooperative environment among universities, industry, and government.
Workforce Leadership
Arizona punches well above its weight in semiconductor employment, with 6.4% of the national semiconductor workforce, despite comprising only 2.2% of the U.S. population. Nearly 50,000 students are enrolled in engineering programs across Arizona State University (ASU), Northern Arizona University (NAU), and the University of Arizona. ASU’s Ira A. Fulton Schools of Engineering — the nation’s largest — graduated 7,400 students in 2024 alone, providing a continuous stream of technical talent.
The report highlights several new workforce programs, including the Materials to Fab Center at ASU, NAU’s $13 million Microelectronics Metrology Lab, and the Future 48 Workforce Accelerators, developed in collaboration with Governor Katie Hobbs and major industry players such as Intel and TSMC. Apprenticeships are now integral: Intel’s new technician apprenticeship and TSMC’s registered training programs, in partnership with Maricopa Community Colleges, are designed to sustain high-skill, high-wage employment for decades.
Job Growth and Economic Impact
The Phoenix metro area now ranks fourth nationally in semiconductor employment, with over 24,000 workers — a 22.3% increase since 2017. Manufacturing accounts for 148,000 local jobs, with electronics and semiconductor roles representing 21% of that total. Each semiconductor job supports five additional positions in construction, retail, and services, according to the Greater Phoenix Economic Council, amplifying the industry’s regional impact.
Public Incentives and CHIPS Act Boost
Arizona’s incentive toolkit remains one of the most competitive in the nation. Programs such as the Qualified Facility Tax Credit, Quality Jobs Tax Credit, R&D Tax Credit, and Foreign Trade Zone reductions have helped attract major expansions. In parallel, the CHIPS and Science Act has provided an unprecedented $6.6 billion to Arizona projects, with $3.9 billion allocated to Intel in Chandler, $400 million to Amkor in Peoria, and additional support for supply chain projects across Casa Grande, Mesa, and Prescott.
These investments span every link of the supply chain — materials, equipment, packaging, and R&D — amounting to more than $165 billion in announced facilities between 2020 and 2025. The Phoenix metro’s semiconductor ecosystem now includes 35 major manufacturers and 181 suppliers, with Casa Grande hosting 12 additional fabrication operations.
TSMC’s Transformative Role
No single project has had more impact than TSMC’s ongoing multi-fab expansion. The company’s initial $12 billion commitment in 2020 has since grown to $165 billion, encompassing three advanced fabs and two packaging plants. The first fab began high-volume production of 4-nanometer chips in late 2024 — the only U.S. site producing such advanced logic technology. By 2030, the Phoenix campus is projected to supply one-fifth of the world’s leading-edge chips.
Surrounding the campus is the planned 2,300-acre Halo Vista development — a mixed-use “city within a city” envisioned to add 30 million square feet of industrial, office, retail, and housing space and create 62,000 new jobs over 25 years.
Conclusion
CBRE’s report portrays Metro Phoenix as the clear leader of America’s semiconductor revival — a region that has married industrial investment with educational innovation and forward-thinking policy. From Intel and TSMC to Amkor, NXP, and dozens of suppliers, Arizona’s semiconductor ecosystem is driving the next generation of U.S. manufacturing and solidifying the state’s status as a global technology powerhouse.
Read the full report here: Semiconductor-Report_CBRE.
