Famous for its snowbirds, the Grand Canyon and retirees on ATVs, Arizona is swiftly carving out a new and unexpected identity blending its historic identity as the “Copper State” with its expanding semiconductor ecosystem. This, coupled with Arizona’s long history of manufacturing, has attracted an entirely new industry to the state: electric car companies.
Electric vehicles, once seen as niche, have reached record highs in the U.S. for both volume and market share, according to Kelley Blue Book. Electric vehicles are now at the center of the global shift toward sustainable transportation with an expectation to more than triple by 2025, according to S&P Global Market Intelligence. But the rise of EVs would be impossible without semiconductors — acting as the “brains” behind electric vehicles, enabling everything from battery management to autonomous driving features.
Arizona’s semiconductor industry is uniquely positioned as a focal point for chip production, attracting suppliers, manufacturers and technology innovators. Companies like Intel, TSMC and emerging players such as Hyperion Technologies are driving advancements in semiconductor technologies. Hyperion, for instance, plans to establish a 600,000-square-foot facility in Peoria to produce substrates — a critical piece of chip architecture used in high-performance computing and EV applications.
“Arizona is a magnet for auto innovation. We’ve had three EV groundbreakings in the last 16 months, which is incredible. Companies testing their cars at proving grounds in the state include GM, Ford, Toyota, VW, Chrysler and Nissan. Arizona is also the epicenter of automated driving. Waymo, Cruise, TuSimple, Embark, Intel and more all have operations here,” says Sandra Watson, president and CEO of Arizona Commerce Authority.
Lucid Motors’ Casa Grande plant, often referred to as an “EV gigafactory,” exemplifies how the semiconductor industry supports downstream industries. Nikola Corporation, which manufactures electric and hydrogen-powered trucks, and ElectraMeccanica, a manufacturer of compact electric vehicles, have also chosen Arizona as a production hub.
The rise of electric vehicles amplifies the importance of semiconductors, and companies like Everspin Technologies, a Chandler-based company, provide a real-world example of this synergy. Everspin’s Magnetoresistive Random Access Memory (MRAM) technology is integrated into Lucid Motors’ luxury Air sedan and the newly launched Gravity SUV, enabling precise powertrain management and data reliability. MRAM’s durability and performance under harsh conditions make it ideal for EV applications, where failure is not an option.
High-performance EVs require chips that can operate reliably under extreme conditions — controlling power management, enabling real-time communication between systems and ensuring vehicle safety. Moreover, as automakers push for longer battery life and advanced connectivity, the need for cutting-edge semiconductors will only grow.
This relationship between semiconductor makers and EV manufacturers highlights the interconnected nature of Arizona’s technology sector and economy. As semiconductors enable advanced EV features, EV growth drives further demand for chips — creating a feedback loop of economic opportunity.
This evolving ecosystem also aligns with federal initiatives like the CHIPS and Science Act, which aim to bolster domestic semiconductor manufacturing. Investments in Arizona are helping to reshape supply chains, reduce reliance on foreign production and solidify the state’s role as a hub for advanced technology.
Companies across the state — from construction firms to engineering specialists — are playing a role in building the infrastructure that supports semiconductor manufacturing and the technologies it powers.
“In Arizona, we have been pioneers in innovation, aerospace and advanced manufacturing, from the first integrated circuits to cutting-edge computing chips to autonomous cars,” says Governor Katie Hobbs.
Arizona continues to evolve from its copper mining roots to becoming a semiconductor stronghold. Whether through infrastructure development, supply chain support or workforce initiatives, Arizona is laying the groundwork for a technology-driven future.
