Kansas State Finance Council's APEX vote paves way for transformative expansion project in Wichita region
WICHITA, Kan., Feb. 2, 2023 /PRNewswire/ -- Integra Technologies Inc., the largest U.S. Outsourced Semiconductor Assembly and Test (OSAT) company, and Kansas Governor Laura Kelly jointly announced today 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 secured Kansas' premier incentive package through a vote of the bi-partisan Kansas State Finance Council, 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. Integra'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.
Integra is a fully integrated domestic provider of semiconductor packaging, test, qualification and other services. Over the next five years, Integra's 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.
"Kansas is stepping up to help resolve a national security crisis by playing a key role in reshoring semiconductor production," Governor Laura 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.
OSAT providers play a critical role in the semiconductor industry, serving as subcontract manufacturers of semiconductor devices. The company 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 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 Brett Robinson, Integra Technologies President and CEO.
"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," Robinson said.
The August 2022 bi-partisan CHIPS Act was established to boost U.S. competitiveness, innovation and national security in the semiconductor industry. As part of the $52.7 billion, it 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.
Robinson praised U.S. Senator Jerry Moran's national leadership for ensuring the U.S. is competitive in providing security and national defense through the CHIPS and Science Act. "Senator Moran recently invited and hosted Micron Technology, one of the leaders in U.S. semiconductor manufacturing, to tour Integra and Wichita State University. We appreciate Senator Moran's commitment to our Kansas' workforce as we also fortify our nation's security through technology infrastructure."
"Integra's decision to expand its Wichita operations for its largest semiconductor project to date is a testament to the talented workforce in Kansas and the importance of ensuring a reliable U.S. supply of microchips," said Senator Moran. "I supported the CHIPS and Science Act because semiconductors are critical to our national and economic security, and now Kansas has a leading role in making certain our nation is able to produce its own semiconductors."
In addition, Robinson thanked Kansas Legislative leadership serving on the State Finance Council for their support.
"APEX exists to promote unique large-scale opportunities at economic and job growth, and there is no better way to do that than having a Kansas company step up and fulfill our commitment to boost the Kansas economy and grow the Kansas workforce," Senate President Senator Ty Masterson said. "Wichita is increasingly the epicenter of critical global industries and this exciting megaproject continues that proud tradition."
"As a long-time resident of Wichita, I couldn't be more excited about this opportunity with Integra. Our region hasn't seen something this transformative in years. By bringing the new sector of chip testing to our area and adding 2,000 new, high-paying jobs, the possibilities are endless. I'm thrilled to be a part of helping make this happen for our residents," Speaker of the House Dan Hawkins said.
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. 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 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.
Integra Technologies is the largest U.S. OSAT company providing semiconductor back-end services to companies worldwide. For 40 years, Integra has provided packaging, assembly, and test services to more than 500 customers with complex requirements, such as aerospace, medical, and defense. The employee-owned company's headquarters is in Wichita, with operations in Wichita and Silicon Valley.
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