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UPDATED: Wichita Company Secures APEX Incentives For $1.8B Semiconductor Plant

UPDATED: Wichita company secures APEX incentives for $1.8B semiconductor plant

UPDATED: Wichita company secures APEX incentives for $1.8B semiconductor plant

UPDATED, 7:15 P.M. Kansas officials have approved an incentive deal with Wichita-based Integra Technologies that will result in the construction of a $1.8-billion semiconductor plant in Wichita totaling 1 million square feet and creating nearly 2,000 jobs. Gov. Laura Kelly announced Thursday that the state will provide an incentive package totaling more than $304 million for the project through its APEX program, paving the way for Integra to apply for federal funding support through the CHIPS and Science Act. Integra says its Wichita expansion, at a yet-to-be-announced site, is designed to support the domestic supply of semiconductor chips that power smartphones, cars, computers and other equipment. “We have done extensive planning for this expansion because we anticipated the increasing need for our services,” said Brett Robinson , Integra president and CEO, in a news release. “With Kansas’ and the Wichita region’s support, we have the thorough plans, long-term experience and proven record to grow our country’s share of this important market.” Kelly called the Integra project the second-largest investment in Kansas history and transformative for the state’s economy. “Integra’s investment is further proof that we have put Kansas on the map, establishing our state on the forefront of innovation and national security,” Kelly said. The Kansas State Finance Council, made up of Kelly and legislative leaders, approved the agreement Thursday following an executive session. Founded in Wichita 40 years ago, Integra is an employee-owned company with operations in Wichita and Silicon Valley and is considered the largest outsourced semiconductor assembly and test (OSAT) company in the U.S. It has more than 500 customers across the military, aviation, medical, automotive, commercial and industrial sectors. As an OSAT company, Integra performs the last half of the manufacturing required to make a chip and validate its functionality before they are shipped to become part of devices, the company says. “The semiconductors we work on are in multiple space applications, such as the Mars Rover and Hubble Telescope; more than 100 Department of Defense programs of record; as well as commercial applications that power everyday life,” said Robinson, the Integra president and CEO. Industry experts say reshoring semiconductor production in the U.S. will be key to the national security crisis. “Kansas is doubling down on its commitment to be at the forefront of this emerging and innovative industry,” Lt. Gov. and Secretary of Commerce David Toland said. “Integra’s plans matched perfectly with the state’s push to diversify our economy and we couldn’t be happier they chose to make this investment right in their backyard.” The Integra project positions the Wichita region and Kansas at the forefront of those efforts, Jeff Fluhr , president of the Greater Wichita Partnership, said in an interview with the WBJ. “This is a very catalytic and transformative announcement today,” Fluhr said. “… It’s an opportunity to position us … as a very distinctive place in which industry innovation occurs.” As part of its new Wichita plant, Integra intends to hire for 2,000 jobs over the next five years, including a large percentage of entry-level jobs requiring a high school diploma or GED equivalent with training opportunities. That includes engineers and technical positions, along with positions to support its corporate headquarters, such as sales, human resources and finance. A Wichita State University economic impact study estimates the construction project will support an additional 3,100 jobs. Robinson said Integra has been working with the Workforce Alliance of South Central Kansas, as well as universities and technical colleges throughout the state, to develop a workforce outreach and training plan to support the hiring efforts. “The Wichita region and Kansas have collaborated on robust workforce planning and support for this effort,” Robinson said. “Our collective plan is especially focused on working with community partners to provide outreach and training paths for individuals and groups that may have barriers to employment.” The APEX program , approved by the Kansas Legislature last February, is available to companies within targeted industry sectors that plan to expand or relocate their headquarters in the state with a project of at least $1 billion — the same program that Panasonic tapped for its $4 billion electric-vehicle battery plant in De Soto. Integra will be the last to participate in the program; the state can only approve one project per year and the program is set to expire at the end of 2023, unless the Legislature votes to extend it. “It’s tremendous to see a local business like Intergra Technologies land a deal of this magnitude,” said John Rolfe […]

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Daisie Hobson

Daisie Hobson is a Director at the Reshoring Institute and an engineer with many years of experience in manufacturing and project management.

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