YOUR BUSINESS AUTHORITY
Springfield, MO
YOUR BUSINESS AUTHORITY
Springfield, MO
The Roy Blunt Jordan Valley Innovation Center at Missouri State University is making a multimillion-dollar investment in companies working to grow the U.S. semiconductor industry.
Through $5.2 million in grant funding, JVIC is investing in seven projects among five companies. Allen Kunkel, associate vice president for economic development and director of JVIC, said each project is set to receive between $740,000 and $750,000 to buy equipment to increase capacity or improve technologies in the semiconductor field, while others are developing new technologies that will impact the industry.
The companies behind the projects are Rolla-based Brewer Science Inc.; Cambridge, Massachusetts-based GVD Corp.; St. Peters-based MEMC LLC; North Billerica, Massachusetts-based SI2 Technologies; and St. Louis-based Watlow Electric Manufacturing Co.
Brewer and Watlow were selected for two investments apiece. Kunkel said that Brewer Science is an on-site tenant and corporate partner, and GVD and SI2 also are corporate partners.
The project investments follow JVIC’s selection this spring for a $5.4 million grant from the Missouri Technology Corp.
There was some flexibility in how JVIC was allowed to parcel out the grant funds it received from MTC, Kunkel said.
“Basically, their main guidelines were to improve infrastructure for industries that are fundamental to national security interests,” he said, noting that led to landing on the semiconductor industry.
Semiconductor boost
Semiconductors are a component of electronic devices, enabling advances in clean energy, communications, computing, health care, military systems and transportation, among other applications, according to the Semiconductor Industry Association. The U.S. is the worldwide industry leader with sales of $275 billion in 2022 and about half of the global market share. The industry employs roughly 345,000 in the U.S. and supports nearly 2.3 million additional jobs nationally, according to SIA.
The federal CHIPS and Science Act was signed into law in August 2022 to boost the U.S. semiconductor industry, and Biden administration officials say funding from the $52.7 billion package will start to be distributed later this year. Its goal is to reshore the national semiconductor supply chain as well as improve national security by decreasing reliance on foreign countries. U.S. manufacturing capacity last year dropped to 12% from nearly 40% of global supply in 1990, according to federal officials.
An Aug. 9 statement from President Joe Biden noted the CHIPS and Science Act as a key part of his economics agenda.
“In the year since I signed this legislation into law, companies have announced over $166 billion to bring semiconductor manufacturing back to the United States,” he said.
Brewer Science, which produces materials for smartphones, tablet computers and other microelectronic devices, employs 46 of its nearly 500 workers at its Springfield office in JVIC.
The company plans to utilize grant funds to help pay for electronic materials to be used in multilayer fabrication in semiconductor packaging at its Springfield facility, said Nathan Ayres, marketing and communications manager.
“What that means is it’s a material that coats, covers and protects electronic equipment or features. It’s a permanent material that would go on a device,” he said.
The Rolla location will conduct research with the funds involving 2D material transfers. Ayers said the company plans to invest additional money for the projects but declined to disclose the amount.
“It is all in the drive to make things more powerful, smaller and more efficient,” he said, adding the company plans to hire an undetermined number of employees to work on the projects.
Advancing work
Noting Brewer Science has performed semiconductor research and development since its inception in 1981, Tracy Jenkins, corporate relations representative, said grant funding is important to advancing its work.
“We do a lot of research and development, and you have to do that to stay way ahead of the game,” she said. “So, a lot of the times, we’re working on things that the vision’s not even out there in the industry.
“We’re talking about technology that you’ll see in the store, six, eight, 10 years down the road,” Ayers added. “That funding now is critical because this is not something we’re commercializing next year.”
Semiconductors are an essential part of everyday life, Jenkins said.
“It’s because electronics and everything is operated by some sort of an electronic device or sensor,” she said. “Everything in a car has it; even your exhaust has it. As a consumer, we want it faster, smaller, better and with more capabilities. So, everything’s driving that way.”
Kunkel said the number of applicants for funding JVIC received through June 15 for its grant money was “significant,” but he declined to disclose the total. He said most applicants sought the $750,000 maximum to fund projects. The projects were selected based on recommendations from a technical review committee and approval by Springfield Innovation Inc., a 501(c)(3) organization associated with JVIC and the Efactory.
“We didn’t fund them all the maximum money because we couldn’t do that, based on how much money we had available,” he said, noting the top two project proposals, both of which came from Brewer Science, received the full $750,000. “So, we trimmed five of the projects down $10,000 each just to make it fair and equitable.
“It’s a good combination of different types of projects that are going to benefit Missouri long term.”
As for JVIC’s grant-funded work, Kunkel said the clock is ticking.
“We want to complete all the projects by Nov. 1, 2024,” he said.
Moseley’s Discount Office Products was purchased; Side Chick opened in Branson; and the Springfield franchise store of NoBaked Cookie Dough changed ownership.
