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Plans for Semiconductor Facility in West Lafayette Put on Hold

WEST LAFAYETTE, Ind. — Plans to build a $1.8 billion semiconductor R&D and fabrication facility in West Lafayette have been temporarily scrapped. SkyWater Technology, a semiconductor manufacturing company based in Minnesota, said Friday that it is not moving forward with its original plans to construct the 600,000-square-foot facility at Purdue University’s Discovery Park District. Once built, the facility was supposed to create around 750 jobs within five years of opening.

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Update on SkyWater Technology’s Decision

“SkyWater has released its option on the land but remain a valued partner with research opportunities in the works,” a Purdue spokesperson said when contacted by FOX59/CBS4 on the development. SkyWater Technology originally made the announcement on July 20, 2022, when the company cited an increase in demand for domestically produced microelectronics.

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Government Initiatives and Industry Trends

“As the details of the CHIPS initiative have unfolded over the last year, we have taken the opportunity to reassess our plans for new fab construction in conversations with the state of Indiana,” SkyWater Technology said in a statement sent to FOX59/CBS4. “While we don’t have a definitive plan targeting new fab construction in Indiana, we remain committed to growing the microelectronics ecosystem in the U.S., including Indiana, with emphasis on providing fab access and production support for emerging and strategic technologies.”

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The original Purdue press release indicated that the project was dependent on receiving funds from the Creating Helpful Incentives to Produce Semiconductors for America Act, or CHIPS for America Act, which was passed by Congress in 2020 to scale domestic production of semiconductors.

This development follows Purdue’s recent announcement that the South Korean chip maker SK Hynix Inc. intends to invest in building a nearly $4 billion semiconductor facility at Purdue Research Park.

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