Discontinued: NHanced Semiconductors planned expansion on Bloomington's west side – B Square Beacon
The planned expansion by NHanced Semiconductors just west of Bloomington’s city limits, has been discontinued.
The expansion could have meant 250 new jobs, many of which would have paid around $100,000 a year.
The public announcement from the semiconductor firm came at the Monroe County council’s regular Tuesday meeting, from NHanced president Bob Patti.
In December last year, the county council unanimously granted a significant tax abatement for the NHanced expansion.
As reasons for the decision to end the company’s effort to expand on Bloomington’s outskirts, Patti cited some federal funding that did not pan out, as well as decreased prospects for private investment.
Patti said, “We are disappointed that we were not able to get CHIPS funding and there were some other avenues that were open to us that did not pan out.”
The CHIPS Act, signed into law by U.S. president Joe Biden in 2022, counts as just a part of worldwide governmental investment in chip manufacturing.
Patti noted that almost a half a trillion dollars now has been put forward in government funding worldwide. He said, “Private funding at this point is very concerned that the huge investment made worldwide now in semiconductors—it may result in a glut in the market.” Patti added, “And that has turned off a lot of the private investment.”
The acronym for the CHIPS Act stands for Creating Helpful Incentives to Produce Semiconductors for America. The name reflects the fact that the bill aims to bolster semiconductor manufacturing in the United States.
The goal of the CHIPS Act is to reduce reliance on foreign semiconductor manufacturing. For the five fiscal years from 2022 through 2027, the act appropriates $52.7 billion—for semiconductor manufacturing, research and development, workforce training and education, and collaboration and coordination with other countries.
Joining Patti in addressing county councilors on Tuesday was Jen Pearl who is president of the Bloomington Economic Development Corporation (BEDC).
Pearl noted that the tax abatement for NHanced, which was approved last year by Monroe County, does not mean a cost to taxpayers, for a project that will not happen. The benefit that derives from a tax abatement comes only when the company hits the targets in the agreement.
As a bright spot, Pearl found Patti’s statement that his firm would continue its planned expansion in Odon, Indiana, south of Bloomington.
In December, Patti had described a 3,000-square foot training facility that NHanced is building at its Odon campus. The training facility was also supposed to have fed into the Bloomington operation’s staffing.
The Odon project is still on course, Patti indicated. “None of that has changed,” Patti said. He continued, “That money was separately raised. We have it in hand and we are moving forward.” NHanced will go into production in Odon at the beginning of 2025, Patti said. He added, “We are still dedicated to being in Indiana.”
Pearl noted that the Odon project, while not immediately on the outskirts of Bloomington, is still within the city’s labor market.
The new facility that NHanced had planned was supposed to have been located in a former General Electric (GE) building west of Bloomington, now owned by Cook Medical. NHanced had planned to lease the building from Cook Medical.
Pearl also said that even though the NHanced expansion had fallen through, pursuing it had caused the economic development community to rethink the way it considers the former GE facility. Pearl put it like this: “It has also reframed how we see the former GE site and the west side employment zone.”
Pearl continued, “We are actually very grateful to Cook Group and others, because we’re looking at how we can use that as a springboard…to promote that for future employment growth as well.”
In the written statement that Patti distributed, the GE facility is highlighted: “NHanced still believes the renovated GE manufacturing site is an ideal location for advanced manufacturing and hopes that another company can take advantage of the efforts already put into reinvigorating the site.”
At Tuesday’s meeting, county councilors were uniform in expressing their appreciation for the fact that Patti had appeared in person to deliver the bad news.
County council president Trent Deckard told Patti, “I’m a child of the RCA/Thomson job losses in this community.” Deckard continued, “And that means that every time we can attract someone like you to create jobs here, for this public official, we will go after that wholeheartedly.”
Deckard said, “When we lost those jobs, that devastated families—including my own.” He added, “So job creation, job protection is in my heart.” Deckard wrapped up by telling Patti: “We will try to get you next time.”
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