Why Phoenix Became A Hot Spot For Tech Companies

While cities like Austin, Texas have garnered attention for drawing tech companies away from Silicon Valley, another hub is emerging as a major power player — Phoenix, Arizona. The fifth largest U.S. city has been a longtime hub for aerospace and defense, now it’s becoming an epicenter of semiconductor manufacturing and autonomous vehicles. Taiwan Semiconductor Manufacturing Company recently completed the most advanced chip fab on U.S. soil and has pledged to invest $65 billion in the area. The city is also where Waymo launched its commercial robotaxi service, and now it’s the new home of Amazon’s long-awaited Prime Air drone delivery service. CNBC's Kate Rooney goes behind the scenes of Amazon's cutting-edge drone delivery operation and explores how Phoenix became a hot spot for tech companies.

Chapters:
0:00 Introduction
2:22 Post WWII boom
4:21 Rise of the Silicon Desert
8:48 Autonomous vehicles
10:54 Amazon drone delivery
13:21 Looking ahead

Produced, Shot and Edited by Andrew Evers
Reporter Kate Rooney
Field Producer Kevin Schmidt
Senior Director Jeniece Pettitt
Additional Reporting and Production Katie Tarasov
Additional Camera Jacob Jimenez
Animation Jason Reginato
Additional footage: Waymo, Amazon, TSMC, Honeywell, Getty Images, Intel

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Why Phoenix Became A Hot Spot For Tech Companies

[Dr_Cole]

These are the type of stories I love to see: informative, forward looking, and positive. I don’t need to be inundated with Pollyanna views, but not do I want to be bombarded with negativity.

[Eric-bhjy]

People forget, the more these buildings are built, parking lots, roads, houses, etc.. the hotter it’s going to get in those areas. Not having farms and desert to absorb the heat is going to be a problem

[MrKemonie]

So people were mad when packages were getting tossed. But now excited for it to fall out the sky? 😂

[izdabombz]

As an engineer in Phoenix metro, engineers are getting laid off left and right. A lot of my colleagues have yet to find jobs 6+ months later.

[Siethon]

Saturated Californian market + Low (Relative) Taxes in Arizona + Cheap Land + Better Water Recycling Technology = Growth Opportunities in AZ

[franciscou]

I’ve grown up here in west Phoenix and not until I seen this video did I really realize how much everything really has changed around here. I actually just saw an amazon drone yesterday as I live in the Tolleson area. Pretty crazy to think we are the first people to be tested with all these things.

[VladBear-orql]

Your clip for the defense industry in Phoenix is a Russian SU-30 at 03:31

[jimstuart]

I've been in phoenix 35 years. Best move I ever made. Always an Aire of optimism. Summers stink, but the rest of the year is beautiful. We've got some great small mountain towns to escape the heat. The pacific is 6 hours away. Las Vegas the same.

[rrl]

Another key aspect of the Phoenix area (I'm an engineer who lives and works here) is the overall environment - no natural disasters, no earthquakes, hurricanes, ice storms, floods, etc. High heat can be managed...

[RatKing]

0:31 this 20 second sequence is a synopsis of America: new tech, great opportunities to advance science, but its use here?

[MikeHarris]

Born and raised! Glad to see this! I am now in my 40's and own a house out in the far north valley in the middle of the desert about 10 min from the new TSMC plant and now Amkor chips is building a MASSIVE semi conductor manufacture plant right around the corner from me in the Vistancia neighborhood. And Hyperion is building a new chip plant too. Along with Intel that's been here for decades! I love that the valley embraced tech! And even in the citys are using advanced technology that no other states use (first state to use digital license plates), enabled autonomous vehicles, traffic control technology, MVD embracing almost all your items can be done online, no need to wait in line at the MVD anymore, embracing drone delivery (near my house is the prime air and Walmart air delivery), and so much more ...

[briank.]

I hope that Phoenix and the remainder of Arizona, are ready for what this type of attention will bring. Take a look at California and see what your future will look like, if not handled right.

[TheLiamster]

Phoenix is a great city but I wish it was designed better with an extensive public transit system and more density rather than sprawling car dependent suburbs

[DJ-yhhm]

Phoenix is an incredible city! I'm from Europe and I've visited Phoenix last year. Such a vibrant American city. I'm hoping to come back someday!

[Langusta_salad]

“The defense industry in particular has had a major presence.”

>>> Proceeds to show Russian fighter jets 😂

[Krushe]

I was in the area last month and tried a Waymo. Very cool experience. I saw the future :)

[alexbr]

Corporations doing whatever it takes to avoid paying taxes despite their record profits. People actually cheer this on instead of holding them accountable, pathetic.

[obeydmax]

I am just imagining "interceptor drones" in the air fighting with Amazon Deliveries operated by drone pirates. 😂

[marsmaker]

America is just awesome, when people are sick of California, they can just move to another state like a new country but with the same laws and stuff.
I wish I lived in America.

[DiscoveryGlobeLifeDocumentaryY]

Phoenix becoming a focal point for tech companies is a clear testament to its appeal due to low costs, developed infrastructure, and a rich pool of potential workforce. However, this boom also poses challenges regarding housing, transportation, and the environment as the city rapidly expands. Can Phoenix maintain a balance between economic growth and a sustainable quality of life for its residents?