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Kansas commits $304M to chip plant to lure federal funds

Kansas plans to give $304 million in taxpayer-funded incentives to a semiconductor company in its largest city to build a huge new factory

By JOHN HANNA
Published - Feb 02, 2023, 08:45 PM ET
Last Updated - Jun 22, 2023, 11:27 PM EDT

TOPEKA, Kan. (AP) — Kansas plans to give $304 million in taxpayer-funded incentives to a semiconductor company in its largest city to build a huge new factory, but the project won't go forward without funds the U.S. government has promised for rebuilding the nation's chip-making capacity.

Gov. Laura Kelly announced Thursday that Kansas has an agreement with Integra Technologies, based in Wichita, for a 10-year package of tax breaks and reimbursement of expenses. State officials said the new, $1.8 billion plant would cover 1 million square feet, have 2,000 employees and create 3,000 additional jobs among suppliers and other local businesses.

The announcement comes with the U.S. trying to reverse a loss of capacity for making the chips that are vital to smartphones, laptops and other modern-day conveniences, as well as automobiles and life-saving medical devices. Congress last year approved a measure that provides more than $52 billion in grants and other incentives for the semiconductor industry.

Kelly told reporters during a Statehouse news conference that the state's incentives are crucial to attracting the federal funds and "making Kansas an essential part of our country's national security efforts.”

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