Indiana one of two states competing for $50B semiconductor plant

June 20, 2023

Wednesday, June 21, 2023 12:25 PM EDTUpdated: Wednesday, June 21, 2023 01:00 PM EDT
By Peter Blanchard, Indianapolis Business Journal
(IBJ photo/Eric Learned)
BOONE COUNTY, Ind. - Indiana is one of two Midwestern states in the running for a potential $50 billion semiconductor plant, according to the Indiana Economic Development Corp. The IEDC also disclosed that it is courting a $3.2 billion data center project that could result in 250 high-wage jobs in Boone County. The semiconductor plant would be among the most expensive ever built worldwide, if not the costliest. To help land the mega deals, the quasi-public agency is asking for $122 million from a $500 million deal closing fund—approved by state lawmakers in this year’s budget—to acquire roughly 1,000 acres of land in Boone County that is already under contract. The IEDC is also seeking $16 million to purchase 290 acres for the data center. Both properties are located in the LEAP Lebanon Innovation District, a planned advanced manufacturing area northwest of Lebanon that could span as much as 11,000 acres. LEAP is an acronym for “Limitless Exploration/Advanced Pace.” If Indiana is chosen for the semiconductor project, it would be the largest single economic development project in the state’s history. In 2022, 218 companies committed to investing more than $22 billion for Indiana projects, marking the highest capital investment since the IEDC was established in 2005, according to the agency. The unnamed semiconductor manufacturer is expected to decide later this year between Indiana and the other Midwestern state. The IEDC said it anticipates including the property as a credit as part of a broader incentive package for the semiconductor company that will be developed over the next few months. The agency declined to disclose specific company names or more details about the projects. “Thanks to the continued leadership of the legislature, the IEDC has the tools and resources to attract the high-wage economies of the future,” said David Rosenberg, IEDC chief operating officer, in a statement to IBJ. “The IEDC’s request at the State Budget Committee is to access funds passed by the legislature in the budget bill from the $500 million Deal Closing Fund and the $150 million Site Acquisition Strategies Fund. The potential projects associated with the IEDC’s request exceed $50 billion of committed capital investment in high-wage industries of the future.”
The IEDC said it is “active negotiations” with the data center operator on a purchase and sale agreement. The IEDC said it must control the land to close the deal. The agency has been buying up land for the LEAP District since early 2022. Last year, the agency spent more than $125 million on purchase agreements, paying on average $73,000 per acre for farmland, which is six times the market value for average-quality farmland. The agency says it has around 9,000 acres of land under contract for the district.
The IEDC will make its case to the State Budget Committee, a board made up of four lawmakers and the state budget director that holds public hearings with state agencies to outline their budget requests, during the committee’s meeting Thursday. If Indiana is not selected for the projects, the money would be transferred to the IEDC’s revolving site-acquisition strategies fund, where it could then be utilized for other economic development opportunities, including selling the land to companies investing within the LEAP District. The committee will also decide Thursday whether to allocate $35 million in performance incentive grants to General Motors and South Korea-based Samsung SDI for an electric vehicle battery manufacturing operation in St. Joseph County. Indiana was chosen for the site last week. On Tuesday, the Lebanon Plan Commission heard an introduction of a plan to create a special zoning classification that would set development standards for the district. An IEDC land-use concept plan included in Tuesday night’s presentation shows 20 different sites at the LEAP district that include uses for mega sites, advanced manufacturing, mixed-use/village center and renewable energy. The Lebanon City Council has already approved development standards for Lilly’s campus in the LEAP district.  Lilly broke ground in April on a 13-building site totaling more than 1.6 million square feet, a projected $3.7 billion investment.