California Continues to Lead in Semiconductor Manufacturing, Awards $46 Million in Tax Credits Expected to Generate More than $1.3 Billion in Investments
SACRAMENTO – California is investing $46 million in innovative companies to bolster the economy and create nearly 500 new jobs across the state. These new CalCompetes Tax Credit awards will continue to support the cutting-edge technologies and businesses that are the hallmark of California, bringing family-supporting jobs and investment to the state that would otherwise go someplace else.
Two California businesses will be expanding their efforts to domestically design, develop, and manufacture the next generation of semiconductors and microchips. Collectively, Bosch and Akash Systems plan to make more than $1.3 billion of capital investments in California, while creating hundreds of new jobs with a combined average salary of nearly $100,000.
California is a global leader in semiconductor research, development, and manufacturing. The state is home to many of the industry’s leading companies, including over 600 fabrication facilities — more than any other state. The Golden State also has the highest number of jobs supported by the semiconductor industry – 63,000 or 23% of the U.S. total.
“California has the ecosystem that is ready to maximize the investments, great jobs, and national and economic security benefits that will result from the forthcoming CHIPS and Science Act federal funding,” said CalCompetes Deputy Director Scott Dosick. “These latest investments in the state’s semiconductor and microchip manufacturing sector ensure that California will remain a global leader in technology innovation for decades to come.”
The California Competes Tax Credit was created in 2013 to help businesses grow and stay in California. GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage and benefits, economic impact, strategic importance and more. In 2022, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to businesses each year through 2028.
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.
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