What draws tech companies such as Amazon, Google, and TSMC to Phoenix?

Phoenix is more famous for its golf courses, Major League Baseball's Spring Training, retirement appeal, and scorching heat rather than technology.

Over several decades, Arizona's largest city has quietly grown into an innovation hub, becoming the epicenter for semiconductor manufacturing, testing self-driving cars and drones.

"According to Anne Hoecker, global head of technology at Bain Global, cities that become significant technology hubs typically exhibit four characteristics. Phoenix possesses all of these traits, including a favorable business environment, an ecosystem of other companies, proximity to a university with a strong engineering program, and access to talent."

The city has attracted numerous technology companies, including TSMC, to take advantage of its benefits.

TSMC, the world's leading chip manufacturer, has committed to investing $65 billion in the Greater Phoenix area, with the goal of expanding its advanced chip manufacturing beyond Taiwan. In 2016, the company began discussions with the city of Phoenix, and the Greater Phoenix Economic Council spent three years developing a science and technology park to meet TSMC's needs. Once completed, the project is expected to create approximately 62,000 jobs in the surrounding and including areas.

"TSMC Arizona's chairman, Rick Cassidy, stated that the science park concept being implemented is a replication of the one originally established in Taiwan. This approach resolves numerous challenges for smaller suppliers, allowing them to lease space and easily connect."

Autonomous vehicles have been tested in the city by companies such as Cruise and Waymo. The infrastructure in Phoenix, with its grid-like streets and consistent weather, made it an ideal location for testing these vehicles, according to Bain's Hoecker.

Self-driving technology has been welcomed in Arizona through the state's policy. Former Governor Doug Ducey enacted executive orders to reduce barriers for autonomous testing. Waymo, the biggest player in the market, began testing in Phoenix in 2017 and now operates its robotaxi service across 315 square miles in the city.

Tolleson, a suburb in west Phoenix, has become the latest city to be put on the map by drone technology. In November, Amazon received regulatory approval to launch its Prime Air drone program in the area. The company aims to scale the program to 500 million deliveries per year and has already delivered thousands of packages.

"David Carbon, vice president and general manager of Amazon Prime Air, stated that scaling is happening not only in the U.S. but worldwide, with more to come in 2025. He added, 'This is just the beginning.'"

CNBC's Kate Rooney takes a behind-the-scenes look at Amazon's drone operation and examines how Phoenix has emerged as a hub for technology.