WASHINGTON — The U.S. Department of Commerce has officially opened applications for the new Regional Technology and Innovation Hub program, a signature proposal from U.S. Rep. Susan Wild, D-Lehigh Valley, that was adopted into last summer's bipartisan CHIPS and Science Act.
The program will designate at least 20 communities across the country as tech hubs and award them up to $75 million to invest in manufacturing and distributing critical technology. Wild has spent much of the last year promoting the program and pitching the region as a perfect candidate. Between its location, transportation network, rich manufacturing history and colleges and universities, the Valley should present a strong case, she said.
"I think there's nowhere better for a tech hub to be located than in Pennsylvania's 7th Congressional District," Wild said in a conference call with reporters Friday.
- Communities across the country can now apply for the Regional Technology and Innovation Hub program, which promotes economic development for critical technology
- The program is based on legislation introduced by Rep. Susan Wild and wrapped into the CHIPS and Science Act
- A local group including Lehigh University and Ben Franklin Technology Partners is already planning its application for a $75 million grant
The law is intended to boost collaboration within the host community. Only consortia of businesses, economic development groups, academia, federal labs, government and/or labor organizations may apply. Wild said her office has encouraged local groups to pool their resources in order to present strong applications but said it's likely the district will produce competing bids.
That competition will only get fiercer as hundreds of other communities across the nation file their own applications for a slice of the $500 million set aside for the tech hub program by Congress. Other members of Congress will be going to bat for their districts, Wild said, but she argued the Lehigh Valley is the right size for this level of investment. Here in Pennsylvania, Philadelphia and Pittsburgh have received their fair share of support from the federal government, and the Valley is worthy of investment on its own, Wild said.
"I am pretty resolute that this belongs in our district and that we have enough here that sharing it would almost be counterproductive," she said.
Don Cunningham, executive director of the Lehigh Valley Economic Development Corp., said his organization has already started meeting with potential partners, including Lehigh University, Ben Franklin Technology Partners of Northeast PA and the Pennsylvania Department of Economic Development. The broad legislation provides potential grant winners with multiple ways to use the funding. For the Lehigh Valley, Cunningham said, the early discussion has been around constructing technologically advanced facilities and promoting job training and education.
Because there will be a limited number of hubs approved nationally, the local consortium's most immediate concern will be making a stronger pitch than Pittsburgh and Philadelphia, Cunningham said. Pittsburgh in particular has already developed a reputation as a technology center. The applications could come down to whether the Department of Commerce wants to create technology centers or use its resources to push existing ones to the next level, he said.
"It's obviously going to be highly competitive, but we clearly have both the history and current assets that we feel can be successful," Cunningham said.
Over the past three years, federal lawmakers have highlighted some of the Lehigh Valley's manufacturing bona fides. In 2021, Wild said she plugged the region's manufacturing industry when President Joe Biden made his first trip to the region. While he held his rally at Mack Truck's plant in Lower Macungie Township, Wild said she brought up local businesses such B. Braun and OraSure.
Earlier this year, U.S Sen. Bob Casey, D-PA., name dropped Infinera in a letter with U.S. Commerce Secretary Gina Raimondo. The semiconductor manufacturer produces its wafers in San Jose, Calif., but the chips are sent to Upper Macungie Township, where they're built into special cases. The cases and wafers are used in broadband, fiberoptic cables, lasers and lidar.
Semiconductors were a major point of motivation for lawmakers when they crafted the CHIPS and Science Act. While microchips were invented in Silicon Valley, much of the industry has moved to China. When the pandemic shut down factories and jammed up ports across the globe, American leaders recognized the small number of semiconductors being produced stateside presented a threat to national security.
The first phase of tech hub applications will be due Aug. 15. The U.S. Economic Development Administration will select groups from that pool to advance to the next phase of the application process.
