WICHITA, Kan. (KWCH) – This month brought two major economic development project announcements to Kansas, involving billions of dollars and thousands of jobs.
Integra Technologies is Examining Semiconductor Plant in Wichita, Investing Approximately $1.8 Billion. Monday brought the announcement that EMP Shield plans to build a $1.9 billion computer chip manufacturing facility in Burlington. Funding from the CHIPS Act is essential for both projects, company and government officials say.
Last August, President Joe Biden signed the CHIPS and Science Act into law. The legislation is intended to stimulate the production of semiconductor chips, as the United States accounts for 10% of global production.
“[CHIPS Act] is in a great position to reverse this rather worrying decline in our manufacturing capacity around the world. The big difference is that governments around the world have been incentivizing chip production on their shores for decades. Our federal government didn’t do that, and as a result, we fell behind,” said John Neuffer, president and CEO of the Semiconductors Industry Association.
Neuffer said that once the CHIPS Act passed, “we’ve seen a significant outflow of commitments from our industry.”
Neuffer said that 40 projects have been announced nationwide through funding from the CHIPS act, equivalent to an investment of over 200 billion dollars. These projects include what is planned for Integra in Wichita and EMP Shield in Burlington.
While the application process hasn’t been announced, when he presented his company’s $1.8 billion plan on Feb. 2, Integra CEO and chairman Brett Robinson explained some of what’s needed.
“You need a package of state and local incentives to apply for CHIPS Act funding,” Robinson said.
The CHIPS Act will provide approximately $200 billion over the next decade.
“In our industry, fabs cost a lot of money. A fabulous high-end, from ten to 20 billion dollars
This includes $52 billion in subsidies for manufacturers and workforce development.
“Getting the right workforce is going to be a critical variable in calculating success here. The good news is that many, many parts of the CHIPS Act have workforce development requirements built into them. They are integrated into grants. All beneficiaries will have to force the programs,” Neuffer. “There is also $200 million set aside for the National Science Foundation to help build state and local workforce programs. This is a critical piece. , but if you don’t have the manpower to handle them, you won’t get an effective result.
About $24 billion is in tax credits for new facilities. There’s also tens of billions of dollars for research and development.
“My guess is that companies will compete pretty fiercely for money. It’s not just about cutting-edge chips, cutting-edge chips or memory chips. There will be what we call more mature node chips, many of the chips that go into cars, refrigerators or toasters,” Neuffer explained of the planned projects.
He said the shortage of chips during the pandemic showed their importance. Although this has largely been fixedsaid the CHIPS Act looks to the future.
“Put it together with the medium to long-term perspective in mind. It only takes two or three years to get these FABs (semiconductor fabrication plants) up and running,” Neuffer said.
Kansas projects also partner with local colleges and universities to train workers. Federal funds through the CHIPS Act would launch those courses.
Integra Technologies was also approved for $300 million from state APEX grants. If Integra does not obtain federal CHIPS Act funding by October 1, the state may withdraw the offer.