In recognition of yet another banner year for economic development wins and economic momentum, Arizona today received a prestigious “Gold Shovel” award from Area Development Magazine in the 5-8 million state population category, marking the state’s fifth consecutive gold shovel. The Shovel Awards recognize states that “garnered large job-creating and investment projects through innovative policies, infrastructure improvements, and other processes that attracted new employers as well as investments in expanded facilities.”

In addition, Area Development named TSMC’s third fab expansion as one of the “Manufacturing Projects of the Year.” In April 2024, TSMC announced plans to build a third leading-edge semiconductor fab in Phoenix. The company has since announced the addition of six more high-tech facilities in Arizona, including three additional fabs, two advanced packaging facilities, and a major R&D center, bringing the company’s total investment in Arizona to over $165 billion.

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Arizona’s 2025 Gold Shovel Award reflects the state’s historic private sector investment and remarkable economic momentum of recent years. Since 2012, Arizona has won seven gold shovel and six silver shovel awards. Arizona’s seven gold shovels have occurred all in the past nine years.

“Arizona is in the business of growing business, attracting global leaders across high-tech industries who are creating thousands of family-sustaining jobs in our state,” said Arizona Governor Katie Hobbs. “In Arizona, businesses and workers have access to unparalleled opportunity, and we’re proud to continually be recognized for high-quality job creation and economic development.”

A look at Arizona economic momentum

“When TSMC made the decision to invest in the U.S., Arizona stood out as the ideal location for our advanced manufacturing semiconductor operation. From our initial groundbreaking in 2021 to today, the support from city and state leaders has been tremendous,” said Rose Castanares, President of TSMC Arizona. “Our increased investment – now at a planned $165 billion – is a testament to our partnership with the state of Arizona. Congratulations to state economic development leaders for this recognition, and ensuring Arizona is a top American cluster of innovation.”

“We are incredibly honored that Arizona has once again been recognized with a Gold Shovel award,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “In 2024, Arizona’s economic momentum surged, with major projects collectively representing billions invested in our communities and thousands of projected new jobs across the state. We’re grateful to Governor Hobbs, our Legislature, and our economic development partners for their support and efforts to make Arizona the best place in the nation for jobs and investment.”

Area Development Magazine ranks states with weighted scores based on the number of high-valued added jobs per capita, amount of investment, number of new facilities, and industry diversity. 

Arizona saw economic development wins across the state in 2024, landing significant semiconductor, manufacturing, aerospace and defense, headquarters, and technology projects.

In addition to TSMC, some 2024 project highlights include:

  • Pure Wafer, a leading semiconductor supplier, announced plans to expand its silicon wafer reclamation facility in Prescott, supporting over 100 jobs.
  • KoMiCo, a semiconductor supplier headquartered in the Republic of Korea, will establish a $50 million semiconductor equipment cleaning and coating facility in Mesa, creating over 200 jobs.
  • Lucid, a leading electric vehicle manufacturer, celebrated the expansion of its manufacturing facility in Casa Grande, adding 3-million square feet to its Casa Grande operations, supporting thousands of new jobs.
  • Cognite, an industrial software company, relocated its global headquarters to Tempe from Norway, creating nearly 140 jobs.
  • PUMA celebrated the grand opening of its state-of-the-art commerce distribution center in Glendale, creating over 100 new jobs.
  • CarbonCapture, a modular systems manufacturer, will establish the world’s first direct air capture manufacturing facility in Mesa, creating 400 new jobs.
  • MiiHealth, an AI-powered health tech company, relocated its headquarters to Phoenix from London, creating over 100 new jobs.
  • Sunlit, Taiwan’s leading semiconductor chemical supplier, celebrated the grand opening of its manufacturing facility in Phoenix, representing a $100 million investment and creating 100 new jobs.
  • Magna, a Canadian automotive supplier, announced a new 230,000-square-foot manufacturing facility in Mesa, creating hundreds of new jobs.
  • MHIRJ Aviation will expand its aircraft maintenance, repair and overhaul services operations in Tucson, adding over 250 new jobs.
  • Blue Polymers broke ground on its recycled plastics production facility in Buckeye, creating over 60 new jobs.
  • Pentagon Technologies will build a semiconductor equipment cleaning facility in Mesa, representing a $51 million investment and creating up to 300 new jobs.
  • FrameTec will build a truss and wall panel manufacturing facility in Casa Grande, investing $150 million and creating over 400 jobs.
  • BlackStar Orbital, an aerospace and defense company, will establish a spacecraft manufacturing and engineering facility in Sierra Vista, creating over 50 jobs.
  • Setnix will expand its aircraft maintenance, repair and overhaul operations in Tempe, creating more than 130 jobs.

A report on the 2025 Shovel Award winners is published in the Q2/2025 issue of Area Development and posted online at areadevelopment.com.