In just the past year, Arizona saw a massive expansion in its boisterous semiconductor industry. Taiwan-based Sunlit Chemicals opened its first U.S. factory in Arizona, which will be a crucial partner to other semiconductor companies in the state. The $100 million, 900,000-square-foot facility is expected to create more than 50 local jobs by early 2025.

Additionally, Taiwan Semiconductor Manufacturing Company (TSMC) announced a third fab location, bringing its total Arizona investment to $65 billion. With this also came the announcement of Halo Vista, a $7 billion, multi-use campus for workers and community members alike, something many real estate companies see as a win for their industry.

“Over the longer term, we expect to see growth across all major property uses in and around the TSMC site,” says Richard Mack, CEO of Mack Real Estate Group, the company developing Halo Vista. “We believe that demand for commercial space should lead naturally to demand for residential, hospitality, retail, restaurant, education and recreational spaces.”

It’s not just the semiconductor industry that’s thriving in the desert. Seven Arizona companies made the cut on Deliotte’s recently released North America Technology Fast 500 list. Lessen Software Services took the highest spot of the local companies, coming in at No. 3.

Phoenix also ranks among the top North American tech markets for office leasing activity this year, registering gains in both office rents and tech jobs, according to CBRE’s annual Tech-30 report. Among Tech-30’s leading submarkets, Tempe ranks nationally for net absorption from the second quarter of 2023 to the second quarter of 2024.

This doesn’t come as much of a surprise, given that tech companies accounted for 38.5% of Phoenix’s $162.5 million venture capital funding secured in the first half of 2024. And, with Tempe being home to Arizona State University (ASU) and other major tech companies, the market shows no signs of stagnation.