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Why tech companies like Amazon, Google and TSMC are flocking to Phoenix
AMZNAmazon(AMZN) CNBC·2025-01-17 13:00

Phoenix as a Tech Hub - Phoenix has evolved into a significant innovation hub, particularly in semiconductor manufacturing, self-driving cars, and drone technology [1] - The city's growth as a tech hub is driven by a favorable business environment, a strong ecosystem of companies, proximity to universities with engineering programs, and availability of talent [2] - Major tech companies, including TSMC, have established operations in Phoenix to leverage these advantages [2] Semiconductor Industry in Phoenix - TSMC, the world's leading advanced chip manufacturer, has committed to investing $65 billion in the greater Phoenix area [3] - The Greater Phoenix Economic Council developed a science and technology park to meet TSMC's needs, which is expected to create around 62,000 jobs [3] - TSMC Arizona is replicating the science park concept pioneered in Taiwan, providing benefits for smaller suppliers [4] Self-Driving Technology in Phoenix - Phoenix has become a key testing ground for self-driving cars, with companies like Uber, Cruise, and Waymo conducting tests in the city [4] - The city's infrastructure, including gridded streets and consistent weather, makes it an optimal location for autonomous vehicle testing [4] - Arizona's policies under former Governor Doug Ducey have reduced barriers for autonomous vehicle testing, with Waymo leading the market and operating a robotaxi service across 315 square miles in Phoenix [5] Drone Technology in Phoenix - Amazon's Prime Air drone program has received regulatory approval in Tolleson, a suburb of Phoenix, marking a significant step in drone delivery technology [6] - Amazon plans to scale the program to 500 million deliveries annually, with thousands of packages already delivered [6] - The company views Phoenix as a starting point for scaling drone operations globally, with further expansion expected by 2025 [7]