Arizona already sits at the center of America’s semiconductor surge. Now, it may be charting a new trajectory — straight into space.
From research labs to manufacturing floors, the state has become a powerhouse in advanced chipmaking. Governor Katie Hobbs reinstated the Arizona Space Commission in February, hoping it will help push the state to the forefront of the rapidly expanding space economy — an industry projected to grow to $1.8 trillion within the next decade.
It’s not a matter of if Arizona can make its mark in the space economy — it’s how quickly it’s ready to move.
The logic is simple: No modern space mission, from satellites to exploratory probes, functions without advanced semiconductors. And thanks to a robust chipmaking ecosystem, an aerospace legacy and renewed momentum from government and industry, Arizona is uniquely positioned to shape the future of space tech.
Arizona’s space and defense roots run deep, with Raytheon, Boeing, Northrop Grumman and Honeywell already deeply entrenched in Arizona’s aerospace economy. But the state is attracting newcomers like Virgin Galactic, who are betting on Arizona’s long-term potential. The company is currently assembling its next-generation spaceplanes in Mesa, and its plans to begin flying research payloads in 2026 are part of a growing constellation of aerospace activity across the state.
It’s not just about the big names, either. Homegrown firms like Paragon Space Development in Tucson and Qwaltec in Tempe — both represented on the re-formed Space Commission — highlight the diversity and depth of Arizona’s aerospace sector.
Still, experts say the real shift lies in the intersection between semiconductors and space. Because, when it comes to rockets, satellites and deep-space missions, it all begins with chips. Systems for autonomous navigation, satellite imaging and mission-critical flight computing all rely on them. But not just any chip will do — space demands semiconductors that can survive extreme radiation, temperature swings and the rigors of long-term operation.
That’s where Arizona stands out.
Billions have been invested here by companies like Intel, TSMC and ON Semiconductor to build and scale operations. But Arizona’s edge isn’t just in having large tech players — it’s in the ecosystem that’s grown around them. Chandler-based Everspin Technologies is one standout. Its magnetoresistive RAM (MRAM) offers a resilient memory solution for use in satellites and other spacecraft. Unlike conventional memory, MRAM doesn’t fail under radiation and provides faster write speeds and higher durability — exactly what’s needed in orbit.
Access to this kind of technology, locally sourced and space-tested, is a game-changer.
That’s part of the reason the U.S. Department of Commerce recently selected the ASU Research Park in Tempe to house one of three national semiconductor R&D facilities under the CHIPS and Science Act. The center will support prototyping and advanced packaging, accelerating innovation by connecting academic researchers with engineers and commercial partners.
To prepare a future-ready workforce, programs like ASU’s NewSpace Initiative and the Department of Defense’s Microelectronics Commons Southwest Hub are already training students in aerospace, semiconductors and systems engineering.
“It really sends the message that we’re not only a semiconductor hub, but the semiconductor renaissance is happening here in Arizona,” says Michael Rosas, vice president of business development for the Arizona Commerce Authority. “This facility, when it’s up and running, is going to build the most advanced chips for quantum computing, the ones that are going to be in the rockets. It’s the exclamation point at the end of the sentence.”
Arizona’s aerospace and defense industry supports more than 66,000 jobs. While it ranks eighth nationally in Department of Defense funding per capita, it contributes almost $9 billion to the state’s bottom line — a growth rate that’s faster than what we’re seeing nationwide.
To paraphrase a line from Captain Kirk: Space — Arizona’s new frontier — isn’t just a scientific story. It’s becoming a reality in the Valley of the Sun.
