Arizona's Tech Job Rollercoaster: Surprising Gains and Losses in 2025
The Arizona Republic2 days ago
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Arizona's Tech Job Rollercoaster: Surprising Gains and Losses in 2025

Tech Industry
techjobs
arizona
employment
semiconductors
aerospace
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Summary:

  • Raytheon and TSMC are leading job gains in Arizona's tech sector, with Raytheon employing 12,500 people and TSMC planning to double its workforce.

  • Intel Corp. has cut its Arizona workforce by 20%, down to 9,400 employees, amid financial struggles and layoffs.

  • Semiconductor employment in Arizona has declined from 40,000 to 34,000 over the past two decades, despite overall state employment growth.

  • Other companies like Microchip Technology and Northrop Grumman are shedding workers, while General Dynamics and Honeywell show increases.

  • The tech job market in Arizona remains volatile, with no consistent growth trend across the sector.

The State of Tech Employment in Arizona

Arizona has a rich history in semiconductor and aerospace manufacturing, yet the technology sector has not seen consistent employment growth. While the world becomes more digitized, this hasn't translated into clear improvements for Arizona's tech-manufacturing jobs.

Notable Job Gains and Losses

Some companies have achieved impressive employment increases. Raytheon, a defense contractor, reported 12,500 employees in Arizona, up from 11,000 the previous year, making it a major employer in the region. Similarly, Taiwan Semiconductor Manufacturing Co. (TSMC) is expanding aggressively, with 3,000 workers currently and plans to double that number as it adds more factories.

However, other tech giants are cutting jobs. Intel Corp., once a standard-bearer for Arizona tech, has reduced its workforce by one-fifth, down to 9,400 employees from 12,000 a year ago, despite receiving $8.8 billion in federal grants. This decline is part of broader challenges, including a significant financial loss and leadership changes.

Mixed Results Across the Sector

Employment trends vary among other key players:

  • Microchip Technology and Northrop Grumman have seen declines in their Arizona headcounts.
  • General Dynamics has increased employment over the past year.
  • Boeing reduced its workforce to 4,932 from 5,208.
  • Honeywell International employs 7,500 people, up from 7,111, and plans to split its aerospace division into a standalone company headquartered in Phoenix in 2026.

Overall, semiconductor employment in Arizona stands at around 34,000, down from 40,000 two decades ago, even as statewide employment grew by nearly one-third during that period.

This mixed bag highlights the volatile nature of the tech job market in Arizona, with some companies thriving while others face significant setbacks.

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