Economy | The right time and right place! Arizona is making every effort to become the "Silicon Valley" of the next generation of transportation. article cover image
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Economy | The right time and right place! Arizona is making every effort to become the "Silicon Valley" of the next generation of transportation.

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Economy | The right time and right place! Arizona is making every effort to become the "Silicon Valley" of the next generation of transportation...

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East Valley has always been regarded as a mecca for automotive innovation.

Leifeng.com Xinzhijia understands that in 1953, the automobile giant General Motors built a desert proving ground in Mesa, Arizona. Although there was already a larger proving ground in Milford, Michigan, Arizona's hot and dry weather and vast geographical distribution obviously had greater advantages and attractions. For more than half a century, new models and automotive systems have been quietly tested behind barbed wire fences and tall earthen embankments.

Recently, in the face of a new trend set off by economic growth and the emergence of talents, General Motors has been unable to resist its inner desire. It has also established an Information Technology Innovation Center in Chandler, Arizona, and has three other centers located in other parts of the United States.

Currently, General Motors is working with chip giants Intel, Waymo and other forward-thinking companies to create an autonomous vehicle center. Their goal is to focus on researching and testing the laser part of autonomous driving technology, hoping to bring disruptive changes to drivers around the world.

This is important because according to the National Highway Transportation Safety Administration, 962 people died in motor vehicle accidents in Arizona alone last year, which was a 7.2% increase from 2015, and the vast majority of accidents were caused by human error.

In response to this safety issue, there are currently 600 minivans equipped with self-driving technology trying high-tech solutions on local streets; the cooperation between Waymo and the ride-hailing service company Lyft will also enable consumers to travel in self-driving cars. Waymo also has a base in Chandler for vehicle maintenance and data analysis.

In the past 18 months, Microchip Technology, NXP, Maxim Integrated, Garmin, Rogers Corp and dozens of other automotive technology supply chain companies have successively entered the East Valley, causing the number of autonomous vehicles in the area to be nearly saturated.

Part of this appeal is the advocacy and support of local leaders. Everyone from Arizona Governor Doug Ducey to local city council and transportation committee members are enthusiastic about autonomous driving. In fact, Arizona has issued directives to support the development of autonomous vehicles and is one of five states in the United States to take such action.

The region also provides automotive technology companies with a friendly regulatory and tax environment through its status as a U.S. Foreign Trade Zone, allowing them to increase cost competitiveness through tax incentives.

Because of its top talent, the PHX East Valley National Brand, an initiative of the Phoenix East Valley Partnership, is promoting the region as a hub for autonomous vehicles.

About 25,000 people work in advanced manufacturing or software development in Chandler, and other cities in the East Valley region also have growing technology workforces. What's more, local schools like Arizona State University and East Valley Institute of Technology can provide businesses with additional training.

Understanding all this, it is not difficult to understand why the East Valley is working so hard to promote the development of the next generation of transportation, not only for Arizona, but also for the entire United States and the world. Because unlike other regions, this place has the right time and location.

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