Purdue's Discovery Park District selected for $1.8B semiconductor fabrication facility

WEST LAFAYETTE, Ind. − SkyWater Technology announced plans Wednesday to open a $1.8 billion state-of-the-art semiconductor manufacturing facility in Discovery Park District at Purdue University.

Indiana Gov. Eric Holcomb joined Purdue President Mitch Daniels in making the announcement at the Neil Armstrong Hall of Engineering on the West Lafayette campus.

SkyWater, according to Purdue, expects to create 750 new direct jobs within five years after it opens.

“Today’s announcement marks a dramatic advance toward multiple strategic goals of Purdue’s last decade: enriched academic and career opportunities for our students; new research possibilities for our faculty; a transformed, more attractive environment on and adjacent to our campus; and the latest demonstration that Purdue and Greater Lafayette are now the hot new tech hub of a growing, diversifying Indiana economy,” said Purdue president Mitch Daniels. “Even for the place that specializes in them, this constitutes a genuine giant leap.”

Tom Sonderman, president and CEO of SkyWater Technology, spoke on behalf of the importance of Purdue's semiconductor degree programs to the future of the upcoming Discovery Park District facility.

"I mean, we would've probably still did it without the program honestly, but that was a huge benefit," Sonderman said, "because again, it shows Purdue's commitment to (the field), it allows us to do things differently. And having a fab (fabrication plant) located at a university how this innovation happens."

Due to semiconductor manufacturing moving to East Asian countries such as China, Japan, South Korea and Taiwan, the U.S. global input of manufacturing fell to 12% in 2021, according to Purdue.

In an act to increase U.S. semiconductor production, Congress introduced the Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS for America Act), in June 2020. This act supports the United States' research, development, manufacturing and supply chain of semiconductors.

Holcomb has endorsed the CHIPS for America Act and is encouraging funding and participation in the act as much as possible. This new, 600,000-square-foot semiconductor manufacturing facility may or may not be able to expand to its full potential if SkyWater does not receive funding from the CHIPS Act, according to Holcomb.

"This endeavor to bolster our chip fabrication facilities will rely on funding from the CHIPS Act," Sonderman said. "Federal investment will enable SkyWater to more quickly expand our efforts to address the need for strategic reshoring of semiconductor manufacturing. Through our alliance with the Indiana Economic Development Corporation and Purdue Research Foundation, we have a unique opportunity to increase domestic production, shore up our supply chains and lay the groundwork for manufacturing technologies that will support growing demand for microelectronics.”

The combined job forces that Saab, Rolls-Royce and now, SkyWater Technology, will bring shows a bright future for West Lafayette, especially in the eyes of West Lafayette mayor John Dennis.

"This takes something that has had all the necessary success to be of value as it is," said Dennis, who was overcome with emotions, "but it's something that's just gonna be off the charts. It's gonna change the quality of life, it's gonna change the identity not just of Greater Lafayette or Tippecanoe County, but of the state of Indiana; probably the Midwest."

This article originally appeared on Lafayette Journal & Courier: Purdue selected for $1.8B semiconductor fabrication facility