Phoenix, Arizona, December 2, 2025
Arizona’s economy is experiencing significant growth, driven by advancements in the semiconductor and solar energy sectors, alongside a surge in new business formations. The state has attracted over 40 semiconductor projects since 2020, resulting in $102 billion in investments and 15,700 jobs. Additionally, Arizona ranks fifth in solar power installations and continues to foster a vibrant entrepreneurial landscape, with 121,520 new business applications submitted in 2024. These developments position Arizona favorably in national economic rankings and underscore its commitment to innovation and sustainability.
Phoenix, Arizona – Arizona’s economy continues to demonstrate robust growth, with significant advancements in the semiconductor and solar energy sectors, as well as a notable increase in new business formations.
Semiconductor Industry Expansion
Arizona has solidified its position as a national leader in semiconductor manufacturing. The state has attracted over 40 new or expanded semiconductor projects since 2020, totaling more than $102 billion in capital investment and creating approximately 15,700 direct industry jobs. Major companies such as TSMC, Intel, Amkor, and Analog Devices have established operations in the Phoenix-Tucson corridor, contributing to Arizona’s rapidly expanding semiconductor ecosystem. This growth is further supported by initiatives like the CHIPS and Science Act, which have bolstered the state’s manufacturing capabilities.
Advancements in Solar Energy
Arizona has also made significant strides in solar energy development. The state ranks fifth nationally in solar power installations, following California, Texas, Florida, and North Carolina. Additionally, Arizona is among the top ten states for solar power growth, reflecting its commitment to renewable energy and sustainable development. These advancements are facilitated by favorable policies and the state’s abundant sunlight, making it an attractive location for solar energy projects.
Surge in New Business Formations
Entrepreneurial activity in Arizona remains strong, with a substantial increase in new business formations. In 2024, entrepreneurs in Arizona submitted 121,520 new business applications, averaging 14 per hour. This surge indicates a vibrant entrepreneurial spirit and a favorable business environment in the state. The Arizona Small Business Association (ASBA) continues to support this growth by providing resources, advocacy, and networking opportunities for small business owners across Arizona.
State’s Business Climate and Future Outlook
Arizona’s favorable business climate is further evidenced by its ranking as the 12th best state for business in CNBC’s annual “America’s Top States for Business 2025” report. The state received an A grade for infrastructure, ranking third nationally, and a B grade for workforce, ranking sixth. These rankings highlight Arizona’s commitment to creating a conducive environment for business growth and development. Looking ahead, Arizona’s economy is poised for continued expansion, driven by strategic investments in key industries and a supportive policy framework.
Background Context
Arizona’s economic growth is underpinned by strategic investments in high-tech manufacturing and clean energy sectors. The state’s proactive approach to attracting major companies and fostering innovation has positioned it as a competitive player in the national economy. Initiatives like the CHIPS and Science Act have been instrumental in bolstering Arizona’s semiconductor industry, while favorable policies and abundant natural resources have facilitated growth in the solar energy sector. The state’s commitment to supporting small businesses through organizations like the ASBA further contributes to its dynamic economic landscape.
FAQ
What is Arizona’s ranking in semiconductor industry growth?
Arizona is ranked first nationally in semiconductor growth, with over 40 new or expanded semiconductor projects since 2020, totaling more than $102 billion in capital investment and creating approximately 15,700 direct industry jobs.
How does Arizona rank in solar energy development?
Arizona ranks fifth nationally in solar power installations and is among the top ten states for solar power growth, reflecting its commitment to renewable energy and sustainable development.
How many new businesses were formed in Arizona in 2024?
In 2024, entrepreneurs in Arizona submitted 121,520 new business applications, averaging 14 per hour, indicating a vibrant entrepreneurial spirit and a favorable business environment in the state.
What is Arizona’s ranking in CNBC’s “America’s Top States for Business 2025” report?
Arizona is ranked 12th in CNBC’s “America’s Top States for Business 2025” report, receiving an A grade for infrastructure and a B grade for workforce.
Key Features
| Feature | Details |
|---|---|
| Semiconductor Industry Growth | Over 40 new or expanded projects since 2020, $102 billion in investment, 15,700 jobs created. |
| Solar Energy Development | Ranked 5th nationally in installations, top 10 in growth, reflecting commitment to renewable energy. |
| New Business Formations | 121,520 new business applications in 2024, averaging 14 per hour, indicating a vibrant entrepreneurial spirit. |
| Business Climate Ranking | Ranked 12th in CNBC’s “America’s Top States for Business 2025” report, with A grade for infrastructure and B grade for workforce. |
Deeper Dive: News & Info About This Topic
HERE Resources
DOGTV Networks Launches ‘Unleashed by DOGTV’
Innovative Agricultural Research Enhances Lettuce Growth in Arizona
Mountain America Credit Union Expands Its Footprint in Phoenix
Innings Festival Returns to Tempe
Phoenix Flea Market Supports Local Small Businesses
Valley Residents Support Local Entrepreneurs on Small Business Saturday
Dolan Springs, Arizona: 4,050-Acre Ranch Hot Listing at $5.5 Million
Community Comes Together for Blood Drive at Arrowhead Towne Center
TSMC’s $165 Billion Investment Transforms Phoenix Economy
Loro Piana Opens First Boutique in Scottsdale
Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
