Every government announces big plans for the economy, most of the plans gather dust as the existing companies use their existing facilities to expand or continue with the economic plans. Once in a while, companies have the ability to go anywhere to build or expand, an opportunity has come with the Chips Act. The $52 billion Chips Act is intended for companies making chips for computers to build them in the US rather than Asia. Where will the companies break ground to build?

In an article by Cecilia Kang and Ana Swanson of the New York Times News Service, one state has implemented an action plan to lure the companies which will provide long term jobs, the state is Indiana.

Indiana is not the first choice, because states such as Arizona and Texas have existing chip plants. Indiana has little experience with the complicated manufacturing process, but they wanted to catch up. The push is led by Senator Todd Young, Republican, who was a co-author of the bill.

The federal government was looking for 10 sustainable tech hubs. Indiana does have advantages. The state has ample land and water. Purdue University has an engineering school to turn on the researchers and technicians needed for chip production.

In January 2022, Indiana lost out to Ohio for plans by Intel to build 2 factories valued at $20 billion. Brad Chambers, Indiana’s commerce secretary said they learnt some lessons in terms of an attractive package of land, infrastructure and workforce programs. In 2023, the state landed SkyWater’s $1.8 billion investment for 750 jobs.

The land is 24,000 acres of corn and bean farms, the state has been buying for a tech park called LEAP Innovation District. The installation of water and power lines has begun and talks with companies such as SK Hynix and TSMC have begun. The attractions are relatively cheap rent, tax incentives, access to labs and researchers at Purdue University and training programs at the local community college – Ivy Tech.

In May, the first tenant arrived Eli Lilly, the giant pharmaceutical company.

Linking to dividend paying stocks, to be consistently profitable companies need to work with governments at all levels to ensure they have the ability to use the talent in the communities they are located in. Colleges and University programs are very important for people to move into the industry with the skill sets required, there is a very good reason why companies donate money to colleges and universities. For your investments, why schools are they donating to?

There are more questions than answers, till the next time – to raising questions.