Companies including Amazon, Taiwan Semiconductor Manufacturing Company and Alphabet's Waymo are helping to usher in major changes across Phoenix, Arizona.
Mayor Kate Gallego, speaking at the 2025 CNBC Changemakers Summit on Tuesday in Los Angeles, told CNBC's Julia Boorstin the impact of the tech projects is being felt across the city in a variety of ways, perhaps even a few that might be unexpected.
"The quality of dumplings," Gallego said with a laugh. "Between Japanese, South Korean and Taiwanese food, it's been incredible," she said, in a reference to the new workers that have arrived in the city as a result of Taiwan Semiconductor Manufacturing Company's plans to invest more than $165 billion to build advanced chips in the U.S., a huge investment that has brought to Phoenix employees of the chip giant and its supplier network from Asia.
Gallego, who was named to this year's CNBC Changemakers list that highlights women who are making a major mark on business, has aimed to position "Phoenix to be known for innovation."
She is helping Phoenix lean into innovation through robotaxis, via the Alphabet-owned Waymo service. The city is one of three where Waymo operates, and Gallego said that there is "one airport in the world where you can take an autonomous vehicle to the airport, and that is Phoenix Sky Harbor Airport."
The city is also working with Amazon on drone delivery. Last year, Amazon soft launched Prime Air in the West Valley of the Phoenix Metro Area, a service that recently resumed after a two-month pause, and Gallego said that she expects the program to expand to serve more customers later this month.
"Eighty percent of [Amazon] packages have a chance to be drone delivery," Gallego said.
According to Amazon, there are more than 50,000 items that can be delivered by drone to customers living near the designated area in under an hour.
Gallego, who has served as mayor of Phoenix since 2019 and was re-elected to her third and final term last fall, has led several other tech-driven upgrades in the city, one uniquely shaped by her background prior to public office when she worked for a corporate strategy and innovation group. While in that role, Gallego said her boss was killed in a traffic accident, which has led to her to try to find innovative ways to improve pedestrian safety — for example, Phoenix has invested in AI-powered traffic signals that can trigger a stop signal if someone were to fall in an intersection.
"Cities are living laboratories," Gallego said. "We're trying to take innovation and look at all our challenges."
There is perhaps no bigger bet around innovation happening in Phoenix than by TMSC and the $165 billion to build advanced chips in the city, the largest private sector investment in the entire U.S. and one of the U.S.'s biggest manufacturing wins in the last several years.
Gallego, who said the effort to bring TSMC to Phoenix started with her first international trip as mayor, noted that the deal required several adaptations for TMSC, including converting the water system plans into metric and adapting to a different type of voltage system that is unlike others used in the city. It's also reshaping the city, from the food to Mandarin now being taught in school systems and spoken at hospitals.
It's also bringing new high-paying jobs to under-served communities, like Navajo women who previously worked in the coal industry now doing iron work at the semiconductor plant and making more than $100,000. Gallego said the city is working to get more students engaged with advanced tech jobs through advanced apprenticeship programs, and teaching even elementary school students about the potential opportunities that now exist in their community.
"It's really changed the city for the better in many ways and that's been very exciting, and we want it to continue to be a success," she said.
Gallego said while the city is still trying to understand exactly how President Donald Trump's new tariff policies will impact investments, especially for chips that travel back and forth around the world, "We're trying to be a little more flexible with our budget [and] leave some breathing room because we're thinking there's going to be huge, huge changes in our economy."
Regardless Gallego said the city's focus on innovation will continue.
"We're hoping to make Phoenix as future ready as possible," she said.
