Indiana wins $33 million grant for semiconductor hub thanks to Sen. Todd Young's CHIPS Act

Indiana will host one of eight new regional semiconductor-production hubs across the country, the U.S. Department of Defense announced Wednesday as part of the largest round of federal funding to-date from Indiana Sen. Todd Young's CHIPS and Science Act.

The eight hubs will be part of a national network called the Microelectronics Commons, which collectively will receive $2 billion in federal funding through 2027 to accelerate domestic production of microelectronics like semiconductors, an essential component in electronic devices from the communications industry to transportation and the military.

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Indiana-based Applied Research Institute received an initial $33 million award to get started on building the Silicon Crossroads Microelectronics Commons Hub, whose location has not been announced. Indiana's hub is the largest of the eight hubs nationwide in terms of the number of parties participating, having 130 hub members that include businesses, federal labs, state and local governments, and universities from Indiana, Michigan and Illinois. Naval Surface Warfare Center in Crane, Indiana, will manage the nationwide $238 million Microelectronics Commons program.

Young and Democratic Sen. Chuck Schumer of New York were the lead authors of the CHIPS and Science Act, a landmark bipartisan bill signed by President Joe Biden last year and aimed at strengthening the United States' position in the microelectronics production industry. Wednesday's announcement, Young said, shows "Hoosiers are leading the way."

"As we collectively work to grow the nation’s microelectronics base, Indiana will play a key role in the development of these critical national security technologies and capabilities," he said. "More broadly, this announcement shows how the CHIPS and Science Act will connect more of America, including the industrial Midwest, to the innovation economy. This is an exciting day for all who partnered on this effort across Indiana.”

Once the federal funding runs out, the hubs are expected to stand on their own.

Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@indystar.com or follow her on Twitter @kayla_dwyer17.

This article originally appeared on Indianapolis Star: Indiana wins grant for semiconductor hub from Todd Young's CHIPS Act