Eleven months after unveiling plans for a 1-million-square-foot semiconductor factory in Sedgwick County, Integra Technologies has yet to lock in the federal funding needed to make it a reality.
The $2 billion Bel Aire megaproject could be in jeopardy if CHIPS and Science Act funding doesn’t come through in the next 80 days.
In late November the Kansas Department of Commerce extended the deadline for Integra to secure federal money to April 1 after the Wichita-based company missed the original October deadline to confirm funding, according to documents provided to The Eagle and The Star.
If Integra does not secure federal funding, its contract with Kansas will be canceled and it will not receive the more than $300 million in incentives the state promised last year.
Senate President Ty Masterson, an Andover Republican, said he was not yet worried about the viability of the project and he was OK with the extension granted to the company.
“Nothing in the federal government ever moves fast,” he said.
Sen. Renee Erickson, a Wichita Republican who chairs the Senate Commerce Committee, said she had been in touch with members of Kansas’ congressional delegation and they are advocating for Integra to receive CHIPS funding.
“The federal government goes at its own place and, unfortunately, we can call and plead and push all we want and it doesn’t seem to move the needle much,” she said.
In a written statement, U.S. Sen. Roger Marshall confirmed his advocacy for the Bel Aire factory, saying he has met with Integra officials and written a letter of support for CHIPS funding to the Department of Commerce.
“If the U.S. truly wants to develop a strong, independent semiconductor industry it must invest in businesses like Integra that are locally owned and managed and deliver jobs and profits back to Americans,” Marshall said.
“My hope is that this money gets to the company soon and that bureaucracy doesn’t hold investment up any further.”
His Senate colleague, Jerry Moran, said he’s appreciative of the work state and local officials have done to bring semiconductor manufacturing to Kansas.
“As the Department of Commerce continues to roll out grant recipients, I am working to ensure Kansas is positioned to be a strong candidate for these grants,” Moran said in a written statement.
The Biden Administration announced its first two nonbinding CHIPS agreements on Jan. 4, a combined $162 million investment in two fabrication facilities in Colorado Springs and Gresham, Oregon. Federal funding is expected to triple semiconductor production at those sites.
“The [U.S. Commerce] Department can’t comment on any potential applications or applicants. We take business confidentiality extremely seriously,” CHIPS for America Press Secretary Maddie Broas said in a phone interview.
“Apart from the two announcements that we’ve made, those are the only companies that the department can actually comment on at this point in our process.”
In the first year after the $53 billion CHIPS and Science Act was signed into law, companies announced $166 billion in investments in the domestic semiconductor supply chain, according to a 2023 White House fact sheet.
The awarding of CHIPS funding is expected to be a multi-year process.
Integra CEO Brett Robinson said his company is forbidden from providing any updates on its efforts to secure federal funds.
“They’ve got us really locked down,” he said.
“We can’t talk about it other than that we’re still in the process obviously.”
The Sedgwick County Commission and Bel Aire City Council have pledged a combined $750,000 to help Integra with workforce development and training, but the behemoth manufacturing facility will only be viable with state and federal support.
County Commissioner Jim Howell said it would be a “devastating loss” if the Integra plant, which is expected to employ as many as 2,500 people, fell through.
Integra’s is not the only promised semiconductor manufacturing facility in the state. Last February, EMP Shield announced plans to invest $1.9 billion in a computer chip plant in Coffey County.
Amanda Smith is a dedicated U.S. correspondent with a passion for uncovering the stories that shape the nation. With a background in political science, she provides in-depth analysis and insightful commentary on domestic affairs, ensuring readers are well-informed about the latest developments across the United States.
