Phoenix Market Surges as Advanced Manufacturing, Population Boom Shape the Region’s Future
Phoenix is undergoing a remarkable transformation that’s as unexpected as it is uplifting, fueled by explosive growth in advanced manufacturing and a population boom in the East Valley. Recent reports from the Arizona Commerce Authority (ACA), Site Selection magazine, and demographic studies highlight the Valley’s surging appeal to both global investors and relocating families.
Taiwan Semiconductor Manufacturing Co.’s (TSMC) monumental $165 billion facility in north Phoenix sits at the center of Arizona’s economic boom. Dubbed the “TSMC Effect,” this project has ignited a wave of interest in the region, placing Arizona on the map as a hub for domestic semiconductor production. ACA CEO Sandra Watson reports that the agency currently is tracking 482 active business expansion projects across Arizona — 336 of them in manufacturing including 54 semiconductor-related projects and 88 in battery production.
This advanced manufacturing pipeline signals a seismic shift in Phoenix’s economy. Many companies, both domestic and international, are rapidly setting up operations to take advantage of Arizona’s pro-business policies, infrastructure, and skilled labor. Tempe-based Benchmark Electronics and international players like Amkor Technology are also expanding or relocating to the region, further establishing Phoenix as a global tech manufacturing destination.
The appeal isn’t just industrial. Population data shows that the East Valley — including Gilbert, Chandler, Mesa, and Queen Creek — is among the fastest-growing regions in the nation. Gilbert ranked as the fourth-fastest growing large U.S. city between 2014 and 2023, resulting in a population increase of 22%. Chandler and Mesa followed closely with 13% and 12% growth respectively. Queen Creek experienced a staggering 133% population jump, reflecting its growing popularity among families and professionals seeking high quality of life and proximity to emerging job centers.
The East Valley’s booming housing market, job opportunities, and safe neighborhoods all deserve credit for this rapid expansion. Cities like Gilbert and Chandler boast unemployment rates well below the national average — at just 2.9% — while average home values now top $500,000, reflecting strong economic fundamentals.
Phoenix’s rise hasn’t gone unnoticed on the national stage. Site Selection magazine recently ranked Arizona as the No. 1 state for business attraction in the Mountain Region for the second year in a row. The publication hailed Phoenix as “the region redefining the future of tech,” praising its affordability, infrastructure, talent pipeline, and collaborative economic development strategy. Greater Phoenix Economic Council (GPEC) CEO Chris Camacho notes that roughly 80% of its 260 active relocation deals are industrial, with half of those focused on advanced technologies.
With 159 active projects in the ACA’s pipeline coming from international companies, and Arizona exports reaching $32.2 billion in 2024 — up 11.6% from the previous year — the region is poised for sustained momentum. As investment, talent, and families continue pouring in, the Phoenix metro area is redefining itself not only as a national manufacturing stronghold but also as a premier destination for innovation-driven living.
