Over the past 14 months, Indiana has embarked on an ambitious plan to transform 10,000 acres of corn and bean fields into an innovation park with the goal of establishing itself as a microchip manufacturing and research hub. State leaders have met with chief executives from semiconductor giants in South Korea, Taiwan, and Japan, and have hosted high-ranking officials from the Biden administration to showcase a $100 million expansion of chip research and development facilities at a local university.
Indiana’s efforts are part of the Biden administration’s broader strategy to stimulate regional economies and bolster domestic manufacturing and research of semiconductors through the $52 billion CHIPS and Science Act. This landmark package of funding aims to create high-paying tech jobs and startups in areas that may have little foundation in the tech industry.
Unlike states like Arizona and Texas that have a history of chip-making plants, Indiana has limited experience with the complex manufacturing processes involved in chip production. However, the state wants to catch up and has the support of Senator Todd Young, a co-author of the CHIPS Act who has been advocating for increased funding for tech hubs.
Indiana benefits from its ample land and water resources, stable weather conditions, and Purdue University’s engineering school, which promises to produce the technicians and researchers needed for chip production. However, it faces stiff competition and recently lost a bidding war to Ohio for an Intel chip factory project valued at $20 billion.
The success of Indiana’s plan remains uncertain. Some experts believe that turning farmland into advanced chip factories may be overly ambitious and that it will require significant government aid and the right combination of assets to create sustainable tech hubs. Nevertheless, Indiana is forging ahead with its chip-making transformation, centering it around the LEAP Innovation District in the town of Lebanon.
While Indiana’s journey to becoming a microchip manufacturing hub will likely take years and significant investment, state leaders are optimistic about the potential for job creation and economic growth. They are actively pursuing contracts with big chip manufacturers and are focused on developing an attractive package of incentives to attract large chip companies to the state.