BETHLEHEM, Pa. — A who's who of tech industry giants, Pennsylvania elected leaders, regional educational institutions and Lehigh Valley officials have partnered in a bid to secure up to $75 million to boost local production of semiconductors.
Don Cunningham, executive director of the Lehigh Valley Economic Development Corp., said Tuesday his organization had submitted a proposal to the federal Economic Development Administration on behalf of a local consortium.
- A Lehigh Valley consortium of tech companies, government officials and others have banded together in an effort to recognize the region as a technology hub
- If successful, it would make the Lehigh Valley eligible to receive up to $75 million in federal funding
- The program was created from legislation sponsored by U.S. Rep. Susan Wild and added to the bipartisan CHIPS and Science Act
The group, he said, hopes the federal government will designate the Lehigh Valley as a regional tech hub, which would make it eligible to receive a major investment to bolster manufacturing of semiconductors, the microchips that power modern electronics.
"I think we wrote a very compelling narrative for the Lehigh Valley," Cunningham said. "At the end of the day, it's about what you can offer the United States and global competitiveness."
Laying a framework
The submitted proposal does not include a specific plan on how any funding would be used should the government recognize the Lehigh Valley as a tech hub, Cunningham said.
If the region earns the designation, the consortium would need to turn in such a plan later this fall, he said. Cunningham declined to release a copy of the consortium's application, saying LVEDC has not been authorized to do so by the rest of the group.
The consortium formed to take advantage of a program under the bipartisan CHIPS and Science Act of 2022.
The federal legislation is attempting to jumpstart America's ability to manufacture essential science and technology supplies, such as pharmaceuticals and microchips.
The COVID-19 pandemic led to factory shutdowns and clogs in the global supply chain, exposing critical shortcomings in the economy and even national defense. Congress set aside $280 billion to bolster domestic research and production in fields such as artificial intelligence, biotechnology, semiconductors and robotics.
"In the world of technology, $75 million may go further helping a smaller market with a solid foundation grow very quickly."LVEDC Executive Director Don Cunningham
Some of that money will invest in regional technology hubs through a program sponsored by U.S. Rep. Susan Wild, D-Lehigh Valley. For over a year, she has pitched the Lehigh Valley as an ideal recipient of such funding, citing its long history as a manufacturing sector, the abundance of local colleges and the booming transportation industry that would allow products to quickly reach almost anywhere on the East Coast.
'Catalytic effect'
Wild hit on those points again in a letter supporting the consortium to Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo. The local bid would help boost economic and national security, strengthen the education system and create family-sustaining jobs, she wrote.
"Designation as a Tech Hub would have a catalytic effect on the Lehigh Valley’s semiconductor and communications technology ecosystem and would offer a tremendous opportunity to leverage the EDA’s investment to achieve many of the CHIPS and Science Act goals within the coming decade," Wild wrote.
The Economic Development Administration is expected to recognize just 20 tech hubs this round, and it's not clear how likely the Lehigh Valley is to earn the designation. Pennsylvania alone is expecting to see strong bids from both Pittsburgh, which has become a hot spot for robotics and self-driving vehicles, and the greater Philadelphia area, which submitted bids for life science and biopharmaceuticals.
Cunningham said the Lehigh Valley's smaller size may not be a strike against it.
"In the world of technology, $75 million may go further helping a smaller market with a solid foundation grow very quickly," he said.
The key players
Even if the Lehigh Valley doesn't receive a designation as a tech hub, the process of getting local governments, tech companies and other organizations to pool their resources and discuss building a regional economic tech plan should have payoffs, Cunningham said. The national investment in technology is helping create high demand, which could lead companies to make investments in the Lehigh Valley regardless.
"Whether we end up winning the designation or not, this process has been really good for setting up connections here in the Lehigh Valley," he said.
According to the LVEDC, the Lehigh Valley tech hub application received letters of recommendation from:
- Companies Broadcom, Coherent, EMD Electronics, Evonic, iDEAL Semiconductor, Intel, Infinera and Olympus;
- Governments and politicians, including state Sens. Lisa Boscola and Nick Miller, U.S. Sens. Bob Casey and John Fetterman, state Rep. Michael Schlossberg, Pennsylvania Department of Community and Economic Development Secretary Rick Siger, Allentown Mayor Matt Tuerk and Rep. Wild;
- Local colleges, including Lafayette College, Lehigh University, Lehigh-Carbon Community College and Northampton Community College;
- Economic development groups Lehigh Valley Economic Development Corp., Ben Franklin Technology Partners and the Manufacturers Resource Center;
- Labor groups, including the Workforce Board Lehigh Valley and IBEW Local 375;
- Other community partners, including the Allentown School District, the Da Vinci Science Center, LANTA and The Literacy Center.
