How semiconductor-driven growth is driving Arizona’s tech sector
The Arizona Technology Council today released its Q3 2025 Arizona Technology Industry Impact Report, underscoring continued strength in advanced manufacturing, software and semiconductor-driven growth, while highlighting a significant shift away from legacy IT roles across the state’s technology workforce.
“Arizona’s technology economy continues to mature, and this report captures how innovation is reshaping both opportunity and demand,” said Steven G. Zylstra, president and CEO of the Arizona Technology Council and SciTech Institute. “As software, semiconductors and advanced manufacturing scale, we’re seeing higher-wage jobs, deeper investment and a growing emphasis on workforce development that ensures Arizonans can participate in this next phase of growth.”
Key findings from the Q3 2025 Impact Report include:
- Strong growth in modern tech roles: Software developers and advanced engineering occupations continue to outpace overall job growth, supported by expanding semiconductor, AI and advanced manufacturing activity across the state. Software developer roles grew nearly 18.95% between 2019 and 2024, with median annual earnings exceeding $126,000, while high-skill engineering and management positions tied to hardware and manufacturing posted median wages above $160,000.
- Rising wages tied to advanced manufacturing: Semiconductor-related engineering and management roles are lifting average earnings and reinforcing Arizona’s competitiveness in national site-selection decisions.
- Declines in legacy IT positions: Roles such as computer systems analysts and network support specialists fell sharply, reflecting changing enterprise technology models and increased automation.
Beyond labor market data, the Q3 report features a cross-section of company announcements, workforce initiatives and investment activity that bring the numbers to life and illustrate the broader impact of Arizona’s technology ecosystem.
Highlights from the Q3 2025 report include:
Technology Career News
- Amkor Technology breaking ground on a new advanced semiconductor packaging and test campus in Arizona
- Data Center Cooler Manufacturer XNRGY Expands Operations in Mesa with 330,000-SF Site
Diversity in Technology
- Vivian Valenty of VB Cosmetics Named One of 50 Outstanding Asian American Business Leaders for 2025
- The Future of Tech Hiring in Arizona: What Companies Need to Know in 2025
Technology Sector Company News
- TSMC’s Arizona factory turns a profit
- Foam Packaging Specialties Expands with Acquisition of Advanced Packaging Specialties, Creating Full-Service Packaging Operation in Phoenix
Workforce Development and Education
Investment and Research
- A $5 million U.S. Army grant awarded to the University of Arizona to accelerate advanced defense manufacturing
- Major private-sector investments supporting data centers, AI infrastructure and chip production
On the Council’s behalf, the quarterly report is compiled by Lightcast, an organization that creates web-based, data-reporting solutions designed to help cities, industries and planners drive effective policy; create new growth; and engage stakeholders. The report is based on Lightcast’s analysis of data from Emsi, Brookings Institution, CompTIA, AngelList, National Science Board and others.
Download or view the complete report on the Council’s website here.