Arizona is at the center of a once-in-a-generation transformation. Nearly $1 trillion in combined AI and semiconductor investment is reshaping the state’s economy — anchored by TSMC’s massive fabrication cluster and joined by Intel, Amkor, Apple, NVIDIA, Microsoft, OpenAI, Applied Materials and others building the infrastructure and technologies that define the next decade of innovation.
The Greater Phoenix region has emerged as a global epicenter for advanced manufacturing, chip design and AI-driven data systems. Arizona is home to more than 200 semiconductor companies and ranks as the second-largest data-center market in the United States, attracting both global giants and emerging startups.
TSMC’s north Phoenix fabs, Intel’s Chandler expansions and Amkor’s advanced-packaging facility form the foundation of this new industrial corridor. Yet, while these mega-projects build the physical infrastructure for America’s semiconductor comeback, the next breakthroughs — in chips, AI systems and intelligent computing — will come from startups.
At the center of that innovation engine is Tesoro Venture Capital. As a longtime leader in Arizona’s innovation economy, I founded Tesoro VC to create a world-class commercialization and startup-acceleration platform to ensure Arizona’s manufacturing boom is matched by an equally powerful pipeline of next-generation technology companies.
Why Startups Matter
Every global technology powerhouse began as a startup.
- TSMC started as a bold idea in Hsinchu, Taiwan; today it anchors Arizona’s manufacturing corridor.
- NVIDIA, founded in 1993, is now worth about $4.4 trillion and powers much of the world’s AI and data-center infrastructure.
- OpenAI, launched in 2015, ignited the generative-AI revolution driving record semiconductor demand.
- Cadence, Synopsys and AMD all began as small ventures that redefined computing.
These stories make one point clear: The next wave of trillion-dollar innovators will emerge from startups like those in Tesoro’s accelerator.
Global Accelerator
The Tesoro AI + Semiconductor Accelerator is the first program built specifically for founders at the intersection of AI, chip design, data-center infrastructure, and advanced manufacturing. Each 12-week cohort hosts up to 30 startups from the U.S. and abroad developing EDA tools, chiplets, robotics, photonics, quantum materials, medical AI and defense systems.
Participants gain access to partners such as TSMC, Cadence, Amkor, the City of Phoenix and GPEC, along with venture networks spanning Silicon Valley, Taiwan, Japan, Singapore and the UAE. They receive:
- Design and prototyping access through the Tesoro Global Design Center powered by Cadence EDA tools.
- Corporate partnerships and pilots with major semiconductor, healthcare and infrastructure leaders.
- Soft-landing support for international startups establishing U.S. operations.
- Investor showcases and Demo Days connecting startups to global capital.
The backing of industry partners such as TSMC, Cadence and Amkor is vital. Their mentorship, technology access and collaboration give startups the tools and credibility to scale quickly and compete globally.
Tesoro’s global ecosystem strategy also links startups to leading universities and research centers — from ASU and the University of Arizona to partners in Taiwan, Singapore, and Europe — creating commercialization pipelines that move ideas from lab to market at record speed.
Connecting Innovation to Infrastructure
Tesoro’s mission is to ensure today’s fabs are filled with tomorrow’s breakthroughs. The Tesoro Global Design Center allows founders to prototype energy-efficient chips for hyperscale data centers, specialized processors for medical imaging AI, and other deep-tech solutions once limited to Silicon Valley or Taiwan. Combined with Tesoro’s venture fund and corporate network, it forms an environment where innovation, investment and manufacturing converge.
Why It Matters for Arizona and Greater Phoenix
The Tesoro model is not just about startups — it’s about securing Arizona’s position as a global technology leader for decades to come. By integrating advanced manufacturing with AI-driven innovation, Tesoro is transforming Greater Phoenix from a production hub into a complete innovation ecosystem, where ideas, capital and talent converge to design and build the technologies of the future.
Tesoro’s platform advances Arizona’s long-term economic vision by:
- Diversifying the economy beyond fabrication into high-value design, R&D, applied AI and commercialization;
- Creating thousands of high-wage jobs in semiconductor design, AI systems, photonics, and advanced engineering;
- Attracting global talent and strategic investment, making Phoenix the preferred U.S. hub for startups from Asia, Europe and the Middle East;
- Driving innovation in healthcare and sustainability, enabling AI-powered diagnostics, precision medicine and energy-efficient data infrastructure; and
- Strengthening national and digital resilience, with startups developing next-generation chips and AI servers that power Arizona’s expanding data-center networks.
“Tesoro recognizes the critical role startups play in driving our technological edge,” says Greater Phoenix Economic Council President and CEO Christine Mackay. “By dedicating resources to capital, prototyping, international collaboration and cultivating a robust startup pipeline, the organization is empowering entrepreneurs to shape the next generation of technology.”
From Idea to Impact
What Arizona is building today rivals the early days of Silicon Valley — but with greater manufacturing depth and global connectivity. The race to build the future of AI and semiconductors is about who will invent the chips, algorithms and architectures that power everything from autonomous robotics to real-time medical AI to AI-optimized cloud workloads.
By cultivating startups in partnership with TSMC, Cadence, and Amkor, Tesoro VC is helping ensure that the next NVIDIA or OpenAI could be born right here in Arizona. I believe the world’s AI and semiconductor future will be designed, built and scaled in Arizona. Tesoro’s role is to place global startups at the center of that story — driving innovation, creating jobs and powering the economy of the future.
Andy Lombard is the founder and managing partner of Tesoro Venture Capital, an AI + Semiconductor accelerator and venture fund. A six-time venture-backed founder and former executive with Motorola Asia and Motorola Ventures, he also created the Arizona Innovation Challenge and Venture Ready Accelerator and led the $87-million Arizona Venture Development Corporation.
