FILE - Microchip Factory Computer Processor Production Line at Advanced Semiconductor Foundry

(The Center Square) – Four American-owned semiconductor companies will invest a total of $277 million to begin operations in Odon, Indiana, in exchange for $44.7 million in state grants and tax credits, Gov. Eric Holcomb announced Monday.

The companies expect to add over 500 high-wage jobs to the state’s economy.

“Indiana has a rich tradition of advanced manufacturing that continues to push new technologies and innovations forward,” Holcomb said in a statement. “Today’s announcements solidify our semiconductor corridor strategy.”

Holcomb made the announcement at a groundbreaking for the new WestGate@Crane Technology Park, a 10-acre public-private development that is intended to be a hub for semiconductor manufacturing in Indiana.

Attracting the semiconductor industry to Indiana depends on having access to a highly educated workforce, according to Michael Hicks, a distinguished professor of economics and business research at Ball State University.

“The potential locations for these plants are very limited,” Hicks told The Center Square in an email, adding that there are only about 100 counties in the country that are competitive for attracting new semiconductor plants. “Westgate, which is a short drive to Bloomington, is one of those counties that are close enough to a competitive place to make it attractive.”

Hicks agrees that the announced plants are likely to develop highly paid positions.

“The semiconductor industry really wants to hire people with four-year degrees or three-year manufacturing degrees. So, insofar as the industry expands in the USA, it will be competing for some of the most expensive workers in the country,” Hicks said.

The largest of the four incoming manufacturers is Illinois-based NHanced Semiconductors, which will invest more than $236 million to build and equip a 100,000-square-foot facility. It will be the first in the U.S. built specifically for Advanced Packaging. The facility is intended to open in 2024 and employ 413 people by 2028, paying average salaries 2.5 times the Daviess County average

“We’re eager to see the growth and impact of this exceptional venture,” said Bob Patti, president of NHanced and a Rose-Hulman alumnus. “There’s potential for truly revolutionary collaboration among government, industry and Indiana’s first class educational institutions.”

Arizona-based Everspin Technologies plans a 10,000-square-foot fabrication and research site specializing in discrete and embedded Magnetoresistive RAM. Construction will begin next year and should house 35 employees by 2027.

Trusted Semiconductor Solutions of Minnesota will invest $34 million to lease and equip 10,000 square feet of space to create integrated circuits, radiation hardened products and electronic systems solutions for military and defense, space and industrial markets. Operations will begin in mid-2023 and include 40 personnel by 2027.

Reliable MicroSystems of Tennessee will invest $7.3 million to establish operations at WestGate, thereby expanding its presence in Indiana. The company will begin operations at the new campus next year, creating 61 jobs.

Indiana will support the development of WestGate and the establishment of operations by these manufacturers with a series of proposed grants and tax credits.

Indiana READI fund has committed up to $10 million for infrastructure development at WestGate.

Pending approval from the Indiana Economic Development Corp. board of directors, the IEDC will offer up to $10 million in incentive-based tax credits and up to $1 million in training grants to NHanced Semiconductors, which may claim the incentives after Hoosiers are hired.

The IEDC will also provide up to $10 million in redevelopment tax credits as an incentive for companies to invest in redevelopment.

The IEDC will provide up to $1.3 million in incentive-based tax credits and up to $150,000 in training grants to Everspin Technologies; $1.4 million in incentive-based tax credits and up to $150,000 in training grants to Trusted Semiconductor Solutions; and up to $1.7 million in incentive-based tax credits and up to $150,000 in training grants to Reliable MicroSystems.

Daviess County is considering additional unspecified incentives for the four companies.