$1 billion technology manufacturing plant and Colorado Springs | Over 1,000 job subscribers content | So Good News
In what could be an economic development for the Pikes Peak region, a high-tech company that employs hundreds of people in Colorado is eyeing Colorado Springs for an expansion that will add more than 1,000 jobs and invest more than $1 billion in the area. .
The Colorado Economic Development Commission on Thursday approved nearly $3.9 million in financial incentives to entice the company to build a manufacturing facility in the Springs – $111 million of which will be put into incentives by local business and government officials. Information prepared for the Commission by the staff of the Office of State Economic Development and International Trade;
Neither the Colorado Springs Chamber of Commerce & EDC nor city government economic development officials would comment on the project. A timetable for deciding where the company will locate its project is unknown.
The company, “described as a global leader in electronics and process solutions for the electronics, life sciences and other high-tech industries,” is considering Springs for a facility that will sell products to the semiconductor industry.
Officials from the Office of Economic Development told the commission that the project has a capital cost of about $631 million, employs 597 workers in the first phase, and could grow to $1 billion and more than 1,000 employees in the second phase.
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The company is looking to develop the plant in Colorado Springs’ business district, which offers tax breaks as a way to attract new employers, covering various areas of the city.
The company, which currently has 8,800 employees, 504 of whom are in Colorado, is considering another market, which state officials have not identified. The name of the company was also not revealed and its project was codenamed “Garnet”. Protecting a company’s identity is standard practice for state officials when competing to attract new business or employers.
The company’s new facility, which has been in El Paso County for three decades, will be 1 million square feet, Denver news media reported.
Chandler, a 30-year-old tech company in El Paso County, has the money and capacity to build a 1 million-square-foot facility. It points to Microchip Technology, headquartered in Ariz. The people employed by the company; The semiconductor plant on the southwest side of Colorado Springs employs more than a hundred people and announced plans this year for a $40 million redevelopment of the facility.
Microchip, which also operates in Arizona and Oregon, bought the Springs plant in 2016 after it had been operated by San Jose, California-based Atmel Corp. since 1989.
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A Microchip spokesman could not be reached for comment Friday.
In April, The Colorado Economic Development Commission also approved more than $12 million in tax credits for a semiconductor manufacturing company that plans to add at least 644 jobs to El Paso County. It is unclear whether the project, dubbed Project Salsa, is related to Project Garnet.
The investment and possible addition of a new $1 billion facility with 1,000 employees through Project Garnet will breathe life into Colorado Springs’ technology and chipmaking industry.
Springs has been a center of semiconductor manufacturing for decades. Honeywell; NCR United Technologies; Ramtron and Intel were part of the city’s booming semiconductor industry even before the shutdown. In many cases, jobs were moved out of the country.
Fountain said Amara would be welcome, but the developers couldn’t do it.
The company behind Project Garnet is based in Colorado for its talented workforce. Proximity to the supply chain; The state’s commitment to supporting the development of the semiconductor industry includes a business-friendly tax environment and an interest in supporting companies seeking to access state funding sources. through the CHIPS Act; Economic Development Office officials told the Economic Development Commission.
The CHIPS Act, meant to create incentives to help produce semiconductors and science, became law in August. Bipartisan federal legislation seeks to fund the construction of microprocessor manufacturing plants in the United States.
At the same time, The Colorado Springs Chamber & EDC and local organizations have put together “more than $111 million worth” of incentives for Project Garnet, state officials said. “This package includes funding from the City of Colorado Springs, rebates from Colorado Springs Utilities, the creation of a new Urban Renewal District, the Colorado Springs Deal Closing Fund (funded by the City and administered by the Chamber & EDC) and other resources.”
State officials said.
• Project Garnet jobs will pay an average annual wage of $69,096, and managers, technicians, chemists; Engineers and warehouse operators are involved.
• The state’s $3,880,500 incentive will come from its performance-based strategic fund, the Job Growth Incentive Program, and will be paid over five years. The incentive is effective up to $6,500 per net new job.
• The state’s payment initially created 597 full-time jobs with a minimum annual median wage of $68,614, representing 130% of the median annual wage in El Paso County. It depends on the creation of full-time jobs.
● New jobs must be created within one year before the government can provide financial incentives.