Arizona Ranks 7th Nationally by High-Tech Exports; State's Techies Earn $56,000.

Business Editors, Technology Writers

PHOENIX--(BUSINESS WIRE)--May 17, 2000

Arizona is the country's third biggest semiconductor manufacturing state by employment, according to Cyberstates 4.0: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by the American Electronics Association (AEA) and The Nasdaq Stock Market. The study found that Arizona employed 36,700 semiconductor manufacturing workers in 1998, behind California and Texas.

AEA's Cyberstates 4.0 reports that Arizona's entire high-tech industry employed 92,400 workers, making it the 18th ranked state by employment. Arizona added more than 18,000 tech industry jobs to its economic base between 1993 and 1998. The state's technology workers earned an average wage of $55,800 in 1998, or 94 percent more than the average private sector wage.

Cyberstates 4.0 also examines 1999 merchandise exports from each state. The study found that Arizona is the nation's seventh biggest high-tech exporter, with $6.2 billion in electronics exports in 1999.

New to this edition of the Cyberstates report are venture capital and research & development expenditures by state. Arizona ranked 21st in R&D spending ($2.4 billion) and 20th in venture capital investments ($251 million).

"AEA's Cyberstates report shows how critical the high-tech industry is to Arizona's economy, whether measured by jobs, wages, or exports. Semiconductor manufacturing is the most important industry segment, comprising 40 percent of high-tech jobs in Arizona. In addition, the industry also supports a number of spin-off businesses in the community that depend on semiconductor manufacturing," said Dale Lillard, President of Lansdale Semiconductor.

Nationally, Cyberstates 4.0 shows that the high-tech industry has added 1.2 million new jobs since 1993. High-tech industry employment reached a projected five million workers in 1999.

Cyberstates 4.0 is the fourth and most comprehensive edition of AEA's Cyberstates reports. The study includes chapters on national employment and wages in the technology industry. It also measures the economic importance of high tech in each state, using the most recent U.S. government data on jobs, payroll, wages, and exports. The report includes one-page overviews for all 50 states, Puerto Rico, and the District of Columbia, detailing these statistics along with growth and leading industry segments.

AEA members can purchase the Cyberstates 4.0 report for $95; non-members for $190. Call AEA at 800-284-4232 or 408-987-4200.

The American Electronics Association is the nation's largest high-tech trade group, representing more than 3,000 U.S.-based technology companies. Membership spans the industry product and service spectrum, from semiconductors and software to computers, Internet and telecommunications systems and services. With 17 regional U.S. councils and offices in Brussels, Tokyo, and Beijing, AEA offers a unique global policy grassroots capability and a wide portfolio of valuable business services and products for the high-tech industry. For 57 years, AEA has been the accepted voice of the U.S. technology community.

What Does High Tech Mean for Arizona?

  -- 92,375 high-tech workers (18th ranked cyberstate), adding 18,265    jobs between 1993 and 1998  -- High-tech firms employ 52 of every 1,000 private sector workers in    Arizona  -- High-tech workers earned an average wage of $55,817, or 94% more    than the average private sector wage  -- Arizona's average high-tech wage increased 21%, or by over $9,600,    between 1993 and 1998, adjusted for inflation  -- A high-tech payroll of $5.2 billion  -- More than 3,000 high-tech establishments  -- High-tech exports totaled $6.2 billion in 1999  -- High-tech exports comprise 52% of all exports from Arizona, the    seventh-highest concentration nationally  -- Venture capital investments in Arizona totaled $251 million in 1999  -- R&D expenditures surpassed $2.4 billion in 1997        Arizona's National Industry Segment Rankings:  -- 3rd in semiconductor manufacturing employment with 36,700 jobs  -- 19th in industrial electronics manufacturing employment with 4,700    jobs  -- 20th in electronics components and accessories employment with    6,900 jobs 

Source: Cyberstates 4.0, data are for 1998 unless otherwise noted Published by the American Electronics Association (www.aeanet.org)