Name: Kansas: $304 Million Committed to Chip Plant to Draw Federal Funds
Uploaded: 2023-02-04T18:58:58.000Z
Description: Kansas officials are planning to hand over more than $300 million in taxpayer-funded incentives for a semiconductor company to build a new factory in the state's largest city. But there's a catch: The project won't go forward without funds promised by the federal government for rebuilding the nation's chip-making capacity.

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Kansas officials are planning to hand over more than $300 million in taxpayer-funded incentives for a semiconductor company to build a new factory in the state's largest city. But there's a catch: The project won't go forward without funds promised by the federal government for rebuilding the nation's chip-making capacity.

According to Gov. Laura Kelly on Feb. 2, Kansas has an agreement with Integra Technologies, which features a 10-year package of tax breaks and expense reimbursement.

The company's new plant, estimated to cost $1.8 billion, will cover 1 million square feet, have 2,000 employees, and create 3,000 additional jobs among suppliers and other local businesses.

Kelly told reporters that the state's incentives are crucial to attracting the needed federal funds.

She said the plant will be "part of a national push to restore the semiconductor industry so that U.S. workers and businesses can compete and win in the race for the 21st Century."

Integra's CEO declined to say how much federal funding the company needs.

The United States is trying to reverse a loss of capacity for making microchips, combat a shortage worsened by the pandemic, and reduce dependence on Asian suppliers.

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