Gov. Kelly makes major economic development announcement

TOPEKA, Kan. (WIBW) - Gov. Laura Kelly announced state incentives will fuel a major economic expansion.

At a 5 p.m. news conference, Kelly said Integra Technologies in Wichita will build a one-million square foot semiconductor facility. She said it’s a $1.8 billion investment that will create 2,000 jobs, plus more than 3,000 additional jobs through suppliers, construction labor and other service positions.

“As the second-largest private investment in Kansas history, this project will be transformative for our state’s economy, providing over 5,000 high-paying jobs that will help more Kansans create better lives for themselves and their children,” Kelly said. “Integra’s investment is further proof that we have put Kansas on the map, establishing our state on the forefront of innovation and national security.”

According to a news release, the company’s jobs will pay an average annual salary of $51,000.

Just before the news conference, the State Finance Council met in an executive session for 45 minutes. They then unanimously approved an agreement under what’s known as the APEX law, or Attracting Powerful Economic Expansion. Lawmakers passed the bill last session, aimed at luring a Panasonic plant to Desoto. It allows for major incentives to projects with a minimum $1 billion investment.

“Both Democrats and Republicans recognize this as an opportunity for our state, and we’ve worked together to make it happen. Our way of doing business has had some amazing results in our state, and I have no doubt there is a strong and prosperous future on the horizon for Kansas,” Kelly said.

While the details were not publicly discussed during the SFC meeting, the Governor’s office later released information showing the total incentive package is $304,156,381. The bulk of that - more than $180 million - is in a 10 year, 10 percent investment tax credit. The deal also includes payroll and training reimbursement, a residency/relocation incentive, and sales tax exemptions on construction materials and equipment. The Governor’s office stresses Integra must meet certain criteria before any incentives are paid out.

Integra said the state’s incentives clear the way for them to apply for federal CHIPS and Science Act funding. The federal money is available to address gaps in the U.S. semiconductor supply chain, support domestic semiconductor production, and strengthen advanced manufacturing in Kansas.

“So semiconductors power much of our everyday lives, they’re in our cellphones, our automobiles, our gaming systems, satellites, airplanes. They’re everywhere and the pandemic really exposed a lot of supply chain risks for us and so we had to come up with the Chips Act in order to ensure this industry provides the security our nation needs. The semiconductors we work on are in multiple space applications, such as the Mars Rover and Hubble Telescope; more than 100 Department of Defense programs of record; as well as commercial applications that power everyday life,” Integra Technologies President and CEO Brett Robinson said.

The Kansas Dept. of Commerce posted further details of the Integra project here.

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