In the coming months, the government plans to dole out over $50 billion for semiconductor manufacturing and research. The prospect of that much cash has sparked a scramble among states to pitch themselves as the best place to spark a semiconductor boom.
The production issue came into stark relief during the pandemic when Covid shutdowns and supply chain disruptions caused a worldwide shortage of chips.Shannon Pettypiece
More than a dozen states have begun pulling together incentive packages with tax credits, zoning changes and cuts to regulatory red tape to lure the limited number of companies looking to expand their chip production in the U.S. States are scrambling,and interviews with industry leaders and officials.
President Joe Biden arrives for a ceremony at the groundbreaking of the new Intel semiconductor manufacturing facility near New Albany, Ohio, on Sept. 9, 2022.
“This has been like nothing I’ve ever seen before,” said Quentin Messer, head of the Michigan Economic Development Corporation. “Once upon a time, if you got a $1 billion opportunity, you felt like ‘Wow, I may not ever see that ever again.’ Now we have a pipeline of 20-plus projects that are at least $1 billion.”
Before moving to Kansas, Hughes worked on efforts by Arizona to convince the world's biggest chip maker, Taiwan Semiconductor Manufacturing Company, to open athere, something the company announced last year. But he said those types of opportunities are slim and the expectations for some states may be out of wack.
New York's pitch to Micron touted everything from the large number of engineers graduating from schools within a two-hour radius of Syracuse to the region's power grid, since Micron would have access to power coming from four different regions of the state, including carbon-free power from hydro and nuclear plants.
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