WICHITA, Kan. (KSNW) — Kansas Governor Laura Kelly announced on Thursday that Integra Technologies is bringing a semiconductor manufacturing plant to Wichita that will create at least 2,000 jobs.
According to Gov. Kelly, this is the second-largest private investment in Kansas history.
Gov. Kelly, alongside Integra Technologies, the largest U.S. Outsourced Semiconductor Assembly and Test (OSAT) company, announced that the State of Kansas approved Integra’s Attracting Powerful Economic Expansion (APEX) incentive application for an expansion project that will create at least 2,000 jobs and $1.8 billion in capital investment in the Wichita region contingent on receiving federal CHIPS for America funding.
Integra says they secured Kansas’ incentive package through a vote of the bi-partisan Kansas State Finance Council. The state is pledging $304 million in incentives over 10 years. They say this is paving the way for the company’s transformative semiconductor (computer chips) project to apply to the U.S. Department of Commerce for CHIPS and Science Act funding.
The company’s expansion plans are designed to address recent risks identified in the U.S. semiconductor supply chain, support the domestic semiconductor ecosystem, and strengthen advanced manufacturing in the State of Kansas, according to Integra.
Integra says it is a fully integrated domestic provider of semiconductor packaging, testing, qualification and other services.
Over the next five years, Integra says its expansion would create at least 2,000 new jobs and build a one million square foot state-of-the-art headquarters and production facility equipped with high-tech machinery.
Gov. Kelly says the job would be high paying, averaging $51,000 in wages.
A Wichita State University economic impact study estimates an additional 3,161 jobs will be generated by suppliers, construction labor, and other service positions, according to Gov. Kelly.
“Kansas is stepping up to help resolve a national security crisis by playing a key role in reshoring semiconductor production,” Gov. Kelly said. “Our deliberate efforts to diversify the state economy since my administration began four years ago has prepared us for this moment. Partnering with Integra will secure Kansas’ rightful position as a global leader in the semiconductor sector.”
Founded in Wichita 40 years ago, Integra is an employee-owned company (ESOP) with operations in Wichita and Silicon Valley, providing high-quality OSAT services for more than 500 active customers, including many from critical infrastructure sectors such as the military, aerospace, medical, aviation, automotive, commercial and industrial.
Integra says OSAT providers play a critical role in the semiconductor industry, serving as subcontract manufacturers of semiconductor devices. They say they perform 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 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 Integra Technologies President and CEO Brett Robinson. “On behalf of our employee-owners, we are especially grateful for Governor Kelly, Lt. Governor Toland and the Kansas Legislative leadership on the State Finance Council for supporting Integra with its premier economic development program, positioning us to transform domestic OSAT services while expanding in our home state.”
The August 2022 bi-partisan CHIPS Act was established to boost U.S. competitiveness, innovation and national security in the semiconductor industry, Integra says.
As part of the $52.7 billion, the CHIPS Act will award $39 billion to U.S. companies in competitive grants to manufacturers to finance construction, expansion and modernization of facilities and equipment. A state and local incentive package is needed to apply for CHIPS funding.
According to Integra, the jobs and capital investment over the first five years are the beginning of long-term expansion plans.
“We have done extensive planning for this expansion because we anticipated the increasing need for our services,” Robinson said. “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.”
Local and regional partnerships and support are also critical for a CHIPS for America application, including in workforce development, Integra says.
Robinson said that Integra has been working with the Workforce Alliance of South Central Kansas on a workforce outreach and training plan, closely coordinated with support from the Kansas Board of Regents, including every university and technical college in the state.
“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. We are grateful to the partners in the Wichita area and Kansas because we have the talent infrastructure and partnerships to provide the world-class training and opportunities to grow and recruit this workforce, building the jobs of tomorrow.”
Integra’s expansion includes a wide range of positions, with a significant percentage of entry-level jobs requiring a high school diploma or GED equivalent with training opportunities. The company says it will be hiring engineers, technical positions, and all the professional positions required for expanding its corporate headquarters, including sales, human resources, finance and more.
“This catalytic opportunity is especially exciting because it provides for a local, proven, employee-owned company to increase our nation’s competitiveness and security,” said Greater Wichita Partnership President Jeff Fluhr. “It also continues to strengthen and build depth in the Wichita region’s leadership in advanced manufacturing, including in semiconductors, while providing training and development opportunities for the vast expertise our talent has in this area.”
Robinson said the company expects to be able to announce the location within the Wichita region soon, pending a review of technical and site details related to properties under final consideration.
“We are analyzing the final aspects of our space needs for this state-of-the-art solar-powered facility, and as soon as we’ve finished the last analysis, we will announce the site and begin working on the next step in the process to work with local leadership on the support needed for the CHIPS application,” Robinson said.
Watch the full announcement below:
To learn more about the project, its economic impact, and its incentives package, click here.