New collaborative hub for microelectronics attracts $300M+ industry investment, reshoring American semiconductor R&D and manufacturing
Governor Eric J. Holcomb and Secretary of Commerce Brad Chambers joined local officials and business executives today in Odon, Indiana, to break ground on a new microelectronics campus at WestGate@Crane Technology Park (WestGate) that will power the growth of Indiana’s semiconductor industry. The $84 million development, which has already attracted four semiconductor companies to the state, will leverage academic, corporate and defense partners to speed the re-shoring of semiconductor research and manufacturing in the U.S.
“Indiana’s has a rich tradition of advanced manufacturing that continues to push new technologies and innovations forward,” said Gov. Holcomb. “Today’s announcements solidify our Semiconductor Corridor strategy. With a growing microelectronics and CHIP industry, Indiana will be at the forefront of creating critical components to ensure both economic and national security.”
“It is critical to our national security that innovations in microelectronics are homegrown,” said Sec. Chambers. “American leadership and ingenuity have changed the face of the globe for decades, and these investments in the Silicon Heartland will ensure that tradition continues well into the 21st century.”
The new microelectronics campus, WestGate One, is a 10-acre public-private development that will create a hub for semiconductor excellence in the Indiana Uplands region, supporting technology innovation, talent development and infrastructure needs while fostering continued partnerships with the U.S. Department of Defense through the Naval Surface Warfare Center, Crane Division (NSWC Crane) to advance American-made microelectronics.
WestGate One, which is advancing with support from the nationally recognized Indiana Regional Economic Acceleration and Development Initiative (READI), has already secured four semiconductor companies – NHanced Semiconductors, which will anchor the development; Everspin Technologies; Trusted Semiconductor Solutions; and Reliable MicroSystems. Together, these companies plan to invest more than $300 million in Indiana and create up to 549 new, specialized jobs in the coming years, advancing the verification, validation and production of critical microelectronics components in the U.S.
- NHanced Semiconductors, an Illinois-based design and manufacturing innovator, will anchor the new campus, investing more than $236 million to establish operations at WestGate One. The company will build out and equip 100,000 square feet to be the first U.S. fabrication facility (fab) built specifically for Advanced Packaging (AP). The fab will support NHanced’s suite of AP solutions: 3D-ICs, silicon interposers, 2.5D, chiplets, additive silicon manufacturing, photonics, microfluidics and more. NHanced will lease the remaining space at WestGate One to other industry companies and partner with USTF to build microelectronics collaborations, investments and innovations throughout the campus.
NHanced expects to move into its new space in mid-2024 and create up to 413 new jobs by the end of 2028. New positions should offer average salaries exceeding 250% of the Daviess County average.
“We’re eager to see the growth and impact of this exceptional venture,” said Bob Patti, president of NHanced. “There’s potential for truly revolutionary collaboration among government, industry and Indiana’s first class educational institutions. As a Rose-Hulman alumnus, I’m excited to create an Indiana career path for talented young engineers.”
- Everspin Technologies (NASDAQ: MRAM), a publicly-traded company based in Arizona, plans to establish a 10,000-square-foot fabrication and R&D site at WestGate One. The new facility will allow the company to increase production and fulfillment of discrete and embedded Magnetoresistive RAM (MRAM), a specialized technology critical to next-generation defense applications. The company plans to begin its build out in 2023 and create up to 35 new, high-wage jobs by the end of 2027.
- Trusted Semiconductor Solutions (TSS), which delivers high-reliability semiconductor and electronic assemblies, will invest more than $34 million to establish operations at the new microelectronics campus. The Minnesota-based company will lease and equip 10,000 square feet to expand its operations, designing and delivering integrated circuits, radiation hardened products and electronic systems solutions for military and defense, space and industrial markets. The company, which expects to begin operating in Indiana in mid-2023, plans to create up to 40 new, high-wage jobs by the end of 2027.
- Reliable MicroSystems, headquartered in Tennessee, will invest $7.3 million to expand its operations to Indiana, establishing a presence at WestGate One. The company, which offers radiation effects modeling for large contractors, specializes in concept-to-foundry creation and maturation of high-reliability electronics for mission-critical applications. Reliable Microsystems plans to start its new operations in 2023 and create up to 61 new, high-wage jobs to support its growth.
“Today’s announcement is the result of tremendous collaboration among many local, regional and state partners over the past decade,” said Joe Carley, interim CEO of the Uplands Science and Technology Foundation (USTF), a nonprofit foundation established to lead the physical development and enhance the vitality of WestGate. “With the rise of our region’s defense sector and NSWC Crane as a national leader in emerging technologies, Indiana Uplands is growing as a vibrant hub for high-tech innovation. We are delighted to welcome these companies to WestGate and look forward to the opportunities they provide for continued industry growth, high-wage jobs and investment in the region.”
Today’s announcement is the latest in a series of wins for Indiana’s semiconductor industry. In May, the state announced a new Accelerating Microelectronics Production and Development (AMPD) taskforce to help companies in the semiconductor supply chain locate, innovate and produce in Indiana. Soon after, Taiwan-based MediaTek announced plans to establish a new semiconductor design center in partnership with Purdue University, and in July, U.S.-based SkyWater Technology announced plans to establish operations in Indiana, building a $1.8 billion semiconductor R&D and production facility in West Lafayette.
“In the past few years, we have all seen how global events can have an effect on our supply chains and our ability to get our hands on the goods and services we might need,” said Dr. Angela Lewis, SES, technical director at NSWC Crane. “It is NSWC Crane’s job to get the fleet what they need for our nation’s defense, when they need it, so having domestic microelectronics and semiconductor resources to call upon is critical to limiting microelectronics supply chain disruptions. NSWC Crane is a leader for innovation with microelectronics and has built a defense ecosystem here in the heartland with our partners, so this resource will certainly bolster our critical support for this defense requirement.”
READI matching funds (up to $10 million) are committed to support infrastructure needs for WestGate, accelerating this shovel-ready project that will transform Indiana’s semiconductor industry, attract talent to the region and create high-paying, quality jobs for Hoosiers. The project is a key part of the Indiana Uplands region’s strategic plan being led by Regional Opportunity Initiatives. The region was awarded $30 million in READI matching funds to advance its vision, which includes accelerating new technologies and industries while bolstering economic and community prosperity.
“This semiconductor development represents a transformational investment in our region, and Daviess County is privileged to collaborate with IEDC, state and technology partners to support this critical innovation,” said Bryant Niehoff, executive director of the Daviess County Economic Development Corporation.
Pending approval from the Indiana Economic Development Corporation (IEDC) board of directors, the IEDC, based on the company’s job creation plans, will commit an investment in NHanced Semiconductors of up to $10 million in the form of incentive-based tax credits and up to $1 million in training grants. These tax credits are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired. The IEDC will also invest up to $10 million in redevelopment tax credits, which provide an incentive for companies to invest in redevelopment and revitalization to improve the quality of place within Indiana.
Additionally, the IEDC will commit investments in Everspin Technologies of up to $1.3 million in incentive-based tax credits and up to $150,000 in training grants; in Trusted Semiconductor Solutions of up to $1.4 million in incentive-based tax credits and up to $150,000 in training grants; and in Reliable MicroSystems of up to $1.7 million in incentive-based tax credits and up to $150,000 in training grants based on the companies’ job creation plans. Daviess County will consider additional incentives to support the four companies and the development of WestGate One, which is being led by StrongBox and will be constructed in the Daviess County section of the tri-county certified technology park off U.S. 231.