A prominent supplier to the semiconductor industry plans to invest about $70 million in a new research and development (R&D) facility in Michigan.
Silicon Valley-based KLA-Tencor Corp., which develops process control solutions and services, expects to create up to 500 jobs at the Ann Arbor, Michigan, complex. Company officials said the innovations developed at the site would apply throughout the electronics sector, including areas such as data storage, cloud computing, machine learning, and artificial intelligence (AI).
KLA-Tencor executives said the company was drawn to the area’s talent pool, low cost of living, and proximity to Detroit’s airport. The company also plans to expand its current partnership and explore collaborative research efforts with the University of Michigan.
Michigan officials stated that Ann Arbor, Michigan, was selected ahead of some 350 other cities. KLA-Tencor, should it meet its hiring goals, is eligible for eight years of withholding tax capture and a $1.5 million state grant.
The Michigan Economic Development Corp. noted that automakers currently purchase nearly $22 million worth of semiconductors from Michigan companies, and KLA-Tencor said the automotive semiconductor segment is likely to grow as manufacturers seek improved reliability, better defect control, and additional computing power and memory capabilities.
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