North Carolina and Louisiana are the latest states to break ground on big factory builds, as public funds aimed at manufacturing continue to drive plans for more “made in the USA .” A total of $3.6 billion is going to a solar manufacturing plant in Louisiana and a chips facility in North Carolina.
Action in Ohio and North Carolina
According to Dodge Construction Network, manufacturing construction activity continues to “prop up” the sector: “starts skyrocketed 285% in August.” Indeed, as
Construction Dive reports, since the signing of the CHIPS Act in 2022, private spending has “ballooned” to over $511 billion, as companies have leveraged public dollars to get big builds going for semiconductor facilities, EV plants and clean energy production. Recently joining the push are Ohio based general contractor, Rudolph Libbe, with a $1.1. billion dollar build for solar manufacturer, First Solar in Louisiana, and Wolfspeed, with a 2.5 billion dollar chips manufacturing facility in Siler City, North Carolina. As Sebastian Obando further shares:
Both projects have been spurred, in part, by public money. First Solar’s push for U.S.-made components include its effort to qualify for tax credits from the Inflation Reduction Act, while Wolfspeed is seeking federal funds from the CHIPS Act to accelerate the construction of its facility.The two megaproject kickoffs illustrate the groundswell of manufacturing projects that continue to break ground across the U.S. at a historic pace, bolstered by public funding support from the CHIPS Act and Inflation Reduction Act. First Solar’s CEO Mark Widmar detailed the company’s pursuit of federal funds from the IRA in a statement in July. The law provides 30% tax credits for the construction of clean energy manufacturing sites.Meanwhile, Wolfspeed is applying for funds from the CHIPS Act to support the onshoring of its materials plant. The project has already received a $1 billion incentive package from the state of North Carolina….
Other big builds in support of manufacturing that have broken ground in the past year include: a $25 billion Samsung chip fabrication plant in Taylor, Texas; and, a $20 billion Intel semiconductor chips plant in Licking County, Ohio. Billions more are in the pipelines. Contractors looking to get in on the action can learn more about federally funded building initiatives here and about the CHIPS Act in particular here. Whatever’s going on in your region, you can jumpstart your growth spurt with The Partnership Account® for Contractors. Once qualified, contractors get:
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Good To Know: Halo Effect
In addition to directly benefiting semiconductor chip manufacturers and suppliers, “CHIPS is also expected to have a secondary halo effect in the broader ecosystem through migration of supply chains to the US.” Specifically:
The CHIPS Act provides $52.7 billion for American semiconductor research, development, manufacturing and workforce development. This consists of $39 billion in manufacturing incentives, including $2 billion for the legacy chips used in automobiles and defense systems, $13.2 billion in research and development and workforce development and $500 million to strengthen global supply chains….The CHIPS Act also provides a 25% investment tax credit for capital expenses for manufacturing of semiconductors and related equipment.
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