Time for a 6th C? Computers are driving Arizona’s economy

Most Arizona kids learn the five C’s: Copper, Cattle, Citrus, Climate and Cotton. Federal data suggests it may be time to add a sixth, because computers and computer chips are now driving the state’s economy.

According to the U.S. International Trade Administration, Arizona exports nearly $9 billion in computer equipment every year, including parts used in everything from cars to microwaves, as well as the electronic components that power home and business networks.

The second biggest export is semiconductors and other electronic components, worth more than $6 billion. Companies like Intel and TSMC are major players, and TSMC is expanding rapidly in the state.

Amkor, another semiconductor company, recently broke ground on a facility in Peoria.

Copper and metals still rank fourth on the list of Arizona’s top exports. The rest of the traditional five C’s don’t even crack the top ten.

Steve Zylstra, CEO of the Arizona Technology Council, says the semiconductor boom didn’t happen by accident.

“After COVID was over, everybody sort of rethought their supply chain. So that resulted in more nearshoring and bringing manufacturing back to the United States. Arizona, just is well positioned to take advantage of that,” Zylstra said.

He says the state offers tax incentives, relatively cheap power, good weather, and lots of open space. All of that attracts tech companies looking to expand or rehome.

“When you combine the fact there’s still available land here to build facilities, and there’s great business climate, we’re the kind of place that’s going to attract those businesses,” Zylstra said.

The Arizona Technology Council expects Arizona’s tech sector to grow by about 8% over the next five years.