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The region has benefitted from a regulatory environment that encouraged innovation. Despite setbacks, such as the challenges posed by an autonomous vehicle incident in 2018, Phoenix remains a favored site for AV testing, aided by its efficient infrastructure and favorable weather for such projects.
Challenges Ahead: Water Scarcity and Workforce Development
However, rapid advancements aren’t without challenges. Arizona’s scarce water supply presents a particular issue for semiconductor manufacturing, which requires substantial water resources. The state is actively developing alternatives to address water usage and environmental impacts to ensure sustainable growth in the industry.