TRANSCRIPT: Governor Hobbs 2025 International State of the State Address

Good evening, ladies and gentlemen, distinguished members of the diplomatic community, lawmakers,  local officials, and industry leaders. I extend my warmest welcome to all of you – especially those who have travelled from across the globe. 

It is my honor to host you for Arizona’s 2025 – the 20th Annual – International State of the State. I want to begin by extending a sincere thank you to the Phoenix Committee on Foreign Relations. Dr. McElwee - we are so grateful to have your leadership and expertise in Arizona, and I’m thrilled to extend a warm Arizona welcome to you. Chairman Wenz and all PCFR members, thank you for your efforts to expand Arizona’s ties globally and enhance our international reputation. 

As I stand here, I’m pleased to share that Arizona’s International State of the State is as strong as ever. Today, we shine as a beacon of advanced manufacturing, high-tech innovation, skilled talent, and international camaraderie – in large part because of our strong international relationships. We have arrived on the world’s stage, and we’re just getting started. 

To understand the depths of Arizona’s global partnerships, look no further than the expansive list of countries represented here. Tonight, we’re honored to have more than 50 consuls general, trade ministers, and diplomatic partners representing over 35 countries from around the world. 

I would like to take a moment to recognize each of you. When you hear your country's name, please stand, remain standing, and, I would ask everyone to please hold your applause until the end.

We have with us representatives from Australia, Austria, Azerbaijan, Belgium, Bulgaria, Canada, Croatia, Ecuador, Egypt, Finland, France, Germany, India, Indonesia, Ireland, Israel, Italy, Japan, Lithuania, Luxembourg, Malaysia, Mexico, The Netherlands, New Zealand, Oman, Peru, The Philippines, Poland, Portugal, Saudi Arabia, Singapore, Taiwan, Thailand, Turkey, United Kingdom, and Ukraine.

Thank you all for your friendship, engagement, and leadership. You may be seated.

Tonight’s event celebrates our achievements together and the importance of Arizona’s international relationships. Here, we know well that our international partnerships make us stronger, with benefits that transcend borders. 

I’m proud to share that last year, Arizona’s international trade reached historic levels, climbing to a record 74.4 billion dollars. 

Exports from Arizona businesses rose by 12% to 32 billion dollars in 2024 – a growth rate more than five times faster than that of the U.S, and the fastest export growth of any state in the country. 

What does this mean? It means that Arizona products made by Arizona companies and Arizona workers are in high-demand around the world. It also means that Arizona continues to be the premier economy in North America. 

Our major exports today include semiconductors, electrical components, medical devices, and aerospace parts. This is America’s manufacturing hub at work. 

Arizona’s record exports and dynamic growth also mean that global companies increasingly view Arizona as their location of choice to invest and create jobs. 

In fact, since I took office, Arizona has attracted 100 foreign direct investment projects representing more than 35 billion dollars in investment and 11,000 new jobs – and this is even before TSMC’s historic 100 billion dollar announcement last month. These 100 investments span high-tech sectors such as renewable energy, advanced manufacturing, and more. And they are just another sign of our momentum. 

These 100 investments during my time in office put Arizona in the top-two for international investments. This is again before you factor in TSMC’s record-breaking hundred and sixty-five billion dollar commitment to Arizona – the largest foreign direct investment in our nation’s history, a record that I think will stand for a very long time.  

No achievement underscores Arizona’s arrival as a top-tier global economy more than our selection in January as one of three flagship R&D facilities as part of the newly established National Semiconductor Technology Center, or NSTC, alongside the traditional innovation hubs of New York and California. It marks our full evolution from the boom-then-bust agricultural and real estate economies of past generations, to now, a resilient and robust technology hub complete with world-class R&D facilities, and beating heart of America’s reshoring revolution. 

This historic announcement with our partners at ASU and across the ecosystem brings to the state our first national laboratory. It ensures that the next generation of leading-edge technology and innovation through essential prototyping and advanced packaging takes place here in Arizona, creating jobs and launching new companies for decades to come. I was proud to work closely with Senator Kelly to close this deal for Arizona and win this national competition, bringing home this billion-dollar R&D anchor.As I said, Arizona is just getting started. 

Just three months in, already been a busy 2025 in Arizona, to say the least. Right on the heels of the NSTC announcement, TSMC announced its $100 billion expansion earlier this month. With one fab in production and five more either under construction or planned, on top of two advanced packaging facilities and its own major R&D Center, TSMC’s Arizona investment represents the most important international partnership anywhere in the world, right here in Arizona. 

I was proud to be among the first to see the four nanometer chipmaking process in action on US soil at TSMC’s first fab in North Phoenix – an amazing state-of-the-art, technical feat that demands precision unlike any other technology. With chips coming off the line, and more milestones to come, I am constantly reminded that these investments and partnerships have the potential to transform our economy and create mutually beneficial ties that bolster economies both here and halfway across the world.  

This is why I will continue to forge and deepen these partnerships that advance our economy and international relationships. Just last week, I visited Taiwan for the second time in three years. There, I was honored to meet with President Lai Ching-te and TSMC’s global leadership including Chairman C.C. Wei, to express Arizona’s immense gratitude and unwavering support for TSMC’s success and our partnership with Taiwan. 

This partnership is already bearing fruit, culminating in Arizona’s production of the four-nanometer chip. As of January, Arizona is now home to the most advanced microchip production in North America. Think about that. Going forward, the country’s most advanced chips for AI, autonomous vehicles, data centers, iPhones, and more will carry the moniker “Made in Arizona.” Likewise, these facilities will serve as a magnet for our country’s best and brightest and anyone looking for unmatched economic opportunity. Our amazing achievements highlight the promise of Arizona workers and ingenuity, but also the power of partnerships forged across decades and oceans.

In my conversation last week with President Lai, he called Arizona and Taiwan the  "best model" of bilateral cooperation on advanced technology. I reaffirmed to President Lai Arizona’s steadfast support for the Arizona-Taiwan partnership, a partnership that spans decades and is only beginning. 

I want to take a moment to recognize and thank Sandra Watson, who joined me on this recent trip, and her amazing team at the Arizona Commerce Authority. The ACA has done an exceptional job fostering global business relationships and setting up our international partners for success. I think it’s fair to say we would not be where we are with TSMC and countless other projects without Sandra Watson. Let’s give her a round of applause. 

As Sandra knows, these partnerships represent more than just jobs and investment – they are about fostering enduring friendships that transcend administrations and improve lives. As Dutch Consul General Peters spoke about a few minutes ago, we’ve been hard at work strengthening Arizona’s ties with the Netherlands, a vital trade partner and leader in advanced technologies like semiconductors – making that four-nanometer process possible that I talked about earlier. 

In January, I was proud to join Netherlands Minister of Economic Affairs Dirk Beljaarts (BELL-YARTS) to sign an MOU focused on enhancing research and workforce development strategies for the semiconductor industry. As part of that event, Minister Beljaarts announced the opening of the Netherlands Business Support Office in Phoenix, which will expand economic, trade, and foreign direct investment opportunities.

The announcement followed a trade delegation led by the ACA to the Netherlands and Belgium last October, which laid the groundwork for additional collaboration across high-tech sectors. 

The Netherlands isn’t the only country to establish a trade presence in Arizona recently. Last May, I was pleased to join Canadian Trade Minister Mary Ng to announce the opening of a new Canadian Trade Office in Arizona. Canada represents one of Arizona’s top economic partners with connections in key industries.  As such, I’m proud to share that the ACA has established its own trade presence in Canada to spur additional trade and investment. 

When it comes to our North American trade partners, I want people in this room to know - Arizona will always stand by our friends and neighbors. And when it comes to Arizona’s international friends, there is none more important than Mexico — our top trading partner. 

In 2024, exports to Mexico increased more than any other country, by nearly 1 billion dollars, with total trade reaching a record 20 billion dollars.

I was proud to affirm the importance of this relationship on a trip to Hermosillo last October, for the first plenary session of the Arizona-Mexico Commission under my administration. Over two days, more than 350 officials from Arizona and Mexico came together to advance bilateral initiatives around economic growth, environmental resiliency, and public safety.

This year, the Arizona-Mexico Commission celebrates its 66-year legacy. Launched by Governors Paul Fannin and Alvaro Obregon, the AMC’s mission remains as relevant today as it was more than six decades ago, and I invite you all to join us in June for the 2025 AMC Summit here in Chandler, Arizona. 

I was proud to relaunch and revitalize the Arizona-Mexico Commission to get work done and continue building our important bilateral relationship, but make no mistake about it: the chaotic and confusing tariff policies from our federal government are damaging our ability to work together. And it's hurting Arizona businesses – I hear this from business leaders, big and small, all across the state. Earlier this month, I traveled to Nogales to discuss these harmful policies and hear from farmers, food distributors, and small businesses. The message was overwhelming: tariff chaos and confusion is already raising prices and making it harder for our job creators to do business.

I will continue to be a leader speaking out against tax hikes and anti-business policies from Washington, DC, and hope to work with the leaders in this room to protect our economic momentum.

As such, I have called upon the Arizona-Mexico Commission to convene its membership and engage business leaders and experts from across the state and across industries, to help us identify and prioritize key economic interests ahead of the 2026 joint review and any potential changes to the US-Mexico-Canada Agreement, or USMCA. This will ensure that any changes not only represent Arizonans’ interests, but continue to advance our economy. 

As Governor it is my job to ensure Arizona has a seat at the table and is making the most of the USMCA framework. There is a lot of uncertainty as Washington, DC plays games with our closest trade partners, critical supply chains, and everyday costs for working families. As 2026 draws closer, I will make sure Arizona continues its strides forward with Mexico and Canada as key partners. 

As I look across this room, I see many of you who have become familiar faces in Arizona. That’s because in just the last six months, we’ve been proud to host nearly two dozen international delegations from countries such as Japan, Canada, Israel, Germany, Romania, Taiwan, the Netherlands, the United Kingdom, to name a few. 

These visits provide the opportunity for businesses and leaders from both our countries to foster new connections – with impacts that last long into the future. They also represent our commitment to being the most welcoming state in the country. 

When I delivered my State of the State address in January, I talked about the Arizona Promise. Here is my promise to you: you will always be able to count on Arizona. Whether it’s workforce development, technology collaboration, trade and investment – when we partner together, we achieve much more than we ever could alone. 

From our very beginning, Arizona’s story has been one of international collaboration and potential. Today, we are demonstrating the immense value of our global connectedness, and changing the world in the process. 

Arizona’s international partnerships will chart the course and set the standard for human technological achievement in the years and decades to come, while providing good-paying jobs and generational opportunity for Arizonans of all backgrounds. 

We know the value of our international friendships. It’s a story written in our DNA, and one that’s just getting started. 

Thank you.