Starting in December 2022, Colorado Springs experienced a series of significant economic developments with various companies planning to expand or relocate to the area. These plans promised thousands of new jobs and over $2 billion in investments. While most projects are progressing as scheduled, two major plans faced setbacks: Meyer Burger scrapped its plan to convert a former semiconductor plant into a solar cell production facility, and Microchip Technology paused upgrades at their local plant due to a semiconductor glut.
Meyer Burger, a Swiss solar energy manufacturer, initially planned to invest $400 million and hire 350 people for the renovation of the plant closed by Intel in 2007. However, the company deemed the project financially unfeasible and focused on larger restructuring efforts, including canceling an expansion at another plant in Arizona. Microchip Technology, based in Arizona, also put a hold on its upgrade plans for facilities in Colorado Springs and Oregon, affecting 371 potential hires and an $880 million investment.
Despite these setbacks, the U.S. Commerce Department announced $160 million in federal grants to bolster capacity at Microchip's plants, aiming to increase production significantly as part of the CHIPS and Science Act, which incentivizes domestic semiconductor manufacturing. Preliminary agreements are in place, with details being finalized. Microchip's CEO mentioned ongoing discussions with the agency, adding that capital spending would remain low over the current and next fiscal years, though long-term plans remain intact.
Meyer Burger and Microchip are among 13 companies announcing local expansions since late 2022, contributing to an expected 3,800 new jobs over eight years. Twelve of these companies received $285 million in financial incentives, while incentive payouts are contingent on fulfilling job creation milestones. Over 3,000 jobs and $700 million in new facilities and equipment spending are expected from the remaining expansion projects.
A significant endeavor is Entegris' 130,000-square-foot plant in the Rockrimmon area, a $600 million project set to complete by year’s end. The plant, part of a larger manufacturing excellence center, anticipates creating up to 450 jobs by 2028. New hires have already begun, with plans to ramp up as industry demand grows. The new plant will produce critical components for semiconductor manufacturing and has preliminary approval for $75 million in CHIPS Act incentives. Entegris also received state and local incentives totaling nearly $124 million.
Other companies expanding in Colorado Springs include Zivaro, Intuitive, Nooks, Auria, Infinity Labs, Infinity Systems, Frontier Technology, Invictus, Spectrum, Omni Federal, and Davidson Technologies. These companies collectively plan to add thousands of jobs and invest substantial resources into their Colorado Springs operations. Notable projects include Nooks' new secure facility near the University of Colorado at Colorado Springs, Verra's expansion into high-security government workspaces, and Frontier Technology's forthcoming operational research center supporting space operations.
Despite some delays due to federal budget approval issues, these expansions are expected to bolster the local economy significantly. In summary, Colorado Springs is witnessing substantial economic growth with major expansions poised to transform the local job market and industrial landscape. Although some initiatives have faced challenges, the overall outlook remains positive with continued investments and job creation from various companies.
