The future of two major projects in Kansas and thousands of potential jobs in the Wichita area now depends on whether semiconductor manufacturers can secure federal funding within the next 90 days. U.S. Commerce Secretary Gina Raimondo has announced that the remaining funds from the CHIPS and Science Act will be distributed by the end of 2024.
Out of the $39 billion allocated through the CHIPS Act, more than $35 billion has already been awarded to projects across 23 states, none of which include Kansas. However, two Kansas-based facilities are still in the running for federal support: a $1.8 billion Integra Technologies semiconductor plant in Bel Aire, near Wichita, and a $1.9 billion EMP Shield plant in Coffey County.
“The Department is continuing a rigorous evaluation of applications to ensure projects advance U.S. national and economic security, attract private investment, and provide other economic benefits,” said the U.S. Department of Commerce in a statement.
On Tuesday, a $304 million state incentive package for Integra expired due to the lack of federal funds. The agreement, signed in February 2023, had been extended twice in hopes of securing CHIPS funding. “Although the APEX incentive package for Integra expired on October 1, the State of Kansas will continue to offer standard incentives to support both companies’ CHIPS applications,” said Patrick Lowry, spokesperson for the Kansas Department of Commerce.
Proposed Kansas Megaprojects
Integra Technologies, the largest outsourced semiconductor assembly and test operation in the U.S., is headquartered in Wichita. The company hopes to build a one-million-square-foot production facility and create at least 2,000 jobs. If successful, the project could add over 3,000 more jobs to the Wichita area, according to state estimates. However, without federal support, the project may not move forward.
“There’s no commercially viable way to do this without federal funding, and that’s why the CHIPS Act was passed,” said Integra CEO Brett Robinson last year. On Monday, Integra stated that it is prohibited from providing updates on federal incentives, and a spokesperson declined to comment on whether the company would continue its expansion if it does not receive CHIPS funding.
Local incentives, including a 10-year tax abatement and $750,000 for workforce development, will only take effect if federal funding is secured. Meanwhile, Peter Keegan, president of EMP Shield, stated that the U.S. Commerce Department has yet to provide a decision on its application. “They’ve asked questions, we’ve answered them, and now it’s in their hands. There’s no timeline for a decision,” said Keegan.
EMP Shield, which has already seen other companies break ground on microelectronics facilities in Coffey County, remains committed to its expansion plans, even without federal funds. “If federal money doesn’t come through, we’ll look to private funding, though the project would take a different shape,” Keegan added.
Challenges and Uncertainty
Initial announcements of the Integra and EMP Shield projects were met with enthusiasm from state officials. House Speaker Dan Hawkins called the plans “transformative” for the Wichita area. However, those same officials have remained silent recently, with Hawkins, Senate President Ty Masterson, and Governor Laura Kelly all declining to comment.
Senator Jerry Moran, who supports both projects, said he will continue to advocate for funding through the CHIPS Act. “Kansas is an ideal location for investment due to its skilled workforce, central location, and business-friendly environment,” Moran stated.
Sedgwick County Commissioner Jim Howell expressed his disappointment that the Bel Aire project has not been selected yet. “I was very confident about this. To see 23 states awarded before us is shocking,” Howell said. Despite this setback, he remains cautiously optimistic. “I’m holding my breath for good news, but it’s hard to understand why things happen this way.”
Lowry emphasized that the two Kansas megaprojects are still viable contenders for CHIPS funding. “There’s still a considerable amount of unallocated CHIPS money, and both projects have strong merits,” he said. “The State of Kansas fully supports them.”