Midwest becomes hotspot for semiconductor manufacturing and supply industries
June 3, 2024
Now is a great time to be a semiconductor manufacturer or supplier on the hunt for incentives in the United States. Sparked by over $50 billion in funding for the US semiconductor industry via the CHIPS Act, state incentives for the semiconductor sector have increased tremendously. When the White House announced the CHIPS program, it indicated the goal was to address “economic and national security risks” by reducing US reliance on foreign production of microelectronics, like semiconductors. The program also aims to bolster the US economy by expanding the US semiconductor manufacturing industry.
Semiconductor production facilities or “fabs”, as they are known, have been shown to bring capital investments in the billions of dollars. Not only are fabs themselves significant economic development projects that add new jobs to an area, but they attract dozens of suppliers that bring new capital investment and additional well-paying jobs into a community. It is easy to see why governors and state legislatures across the Midwest are developing new incentives and approaches to attract these types of facilities.