NHanced Semiconductors shutters Bloomington project
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
A mostly vacant campus in Bloomington will not become a microelectronics manufacturing and packaging facility after Chicago-based NHanced Semiconductors told the Monroe County Council Tuesday night that federal and private funding fell through for the project.
Founder and President Bob Patti said numerous federal funding sources, specifically the CHIPS and Science Act, did not pan out. He also said the influx of federal dollars meant to hoist up the semiconductor industry has caused a “glut in the market” and private investors to pull back.
The company planned to make a $152 million investment into a vacant Cook Medical facility, located at 301 N. Curry Pike, and create an estimated 250 high-wage jobs.
“As a small company, we are seeing a pullback in people’s desire to venture into the market at this point,” Patti said. “Unfortunately, a plant of the scale that we had planned at the Cook site is just not in the cards—at least today.”
NHanced did not respond to a request for comment in time for publication regarding how the company’s production and growth strategy is altered by the decision.
Patti discussed the funding issues that led to the project being discontinued with the council.
Patti reiterated that the facility is a good spot for advanced manufacturing, and he hopes another company takes advantage of it.
Despite the Bloomington effort falling through, Patti said the company is still committed to operation in Indiana and pointed to its investment at the WestGate One campus in Odon.
That facility, in collaboration with several partners, is currently being constructed inside the WestGate@Crane Technology Park. Patti said that the project is moving ahead with the funding already secured.
Ground was broken on the Crane campus in November 2022, and a company spokesperson said NHanced contributed to the total $236 million investment to build and equip a 150,000-square-foot plant. The company said it would create up to 413 jobs.
Patti said Tuesday that production will begin at the beginning of next year.
The Bloomington location’s production would have differed from the Crane operation. Patti previously told Inside INdiana Business that Crane is focused on older technology and simpler chips, while Bloomington would have specialized in the assembly and packaging needs of the company’s clients.
The Monroe County Council had approved a 10-year tax abatement for the site’s personal property taxes in December. The company will not benefit from the performance-based abatement since the project is not moving forward.
Council members thanked Patti and his company for their interest in Bloomington and said they understood the reasoning for the pullback. Both Patti and the counselors left the door open for the company to return to the area in the future.
“We will always work with you at least as long as I’m sitting here,” Council President Trent Deckard said. “We will try to get you next time.”