Osceola County's semiconductor cluster soon will get tens of millions of dollars to grow.
A county-led bid to land money from the U.S. Department of Commerce's $1 billion Build Back Better Regional Challenge was successful. As a result, the county will get $50.8 million to pump into the semiconductor sector at Osceola County tech district NeoCity, the White House announced Sept. 2.
The Build Back Better Regional Challenge is an American Rescue Plan program meant to strengthen regional industry clusters.
Osceola County — along with the Orlando Economic Partnership, University of Central Florida and Bridg — last year applied for funds for six projects that will boost infrastructure, capabilities and workforce training at NeoCity, including:
- Expand the 109,000-square-foot Center for Neovation semiconductor manufacturing facility by 25,000 square feet.
- Build Neovation Way Road, a new entrance road that will provide a southern entrance to NeoCity.
- Invest in a new research and commercialization program to allow for advanced packaging of microelectronics.
- Invest in a new digital-twin simulation research program, which can be used to improve semiconductor reliability and productivity.
- Train more workers as a way to expand a workforce development pipeline for the semiconductor industry.
- Bolster NeoCity’s livability by growing a neighborhood revitalization model meant to address housing, education and health needs in the community.
In September, the coalition will work with the U.S. Economic Development Administration to execute contracts for the six projects, county spokesman Chris Brumbaugh told Orlando Business Journal. After that, the federal dollars will flow to the county and its partners over the next few years. The funds will be obligated by Sept. 30, Brumbaugh added.
Semiconductor research and manufacturing is an anchor industry of NeoCity, which Osceola County officials hope will create more than 100,000 mostly high-wage jobs in the next 50 years.
The only ongoing industry in NeoCity is semiconductor work undertaken by SkyWater Technology Inc., Imec USA and Bridg. The growth of the industry may create more jobs at those firms and attract more companies, especially as the U.S. faces a semiconductor shortage.
Osceola County Commission Chairman Brandon Arrington called the award a "significant validation" of the county's vision for NeoCity. “The federal government’s investment accelerates our focused efforts to create more economic opportunities at a higher level than ever before.”
Out of 529 applicants, only 21 won grants, which range between $25 million-$65 million for each winning coalition. Osceola County's bid was the only one from the Sunshine State to win funds.
The projects funded by the challenge are projected to create or save up to 100,000 combined jobs, President Joe Biden said during a Sept. 2 press conference recognizing the winners.
In addition to the semiconductor industry, work is ongoing to build out NeoCity's residential, commercial and entertainment infrastructure.
For example, Osceola County in December signed and approved a conveyance agreement with South Korean semiconductor firm DSUS LLC. The agreement outlines the terms of a sale of 25 acres for $565,000 an acre to DSUS as part of the first of two phases of potential development by DSUS.
The agreement lays out a series of milestones for the developer to accomplish over the course of 2022, including submitting development plans, before the sale officially closes. Construction is slated to kick off in early 2023.
According to the conveyance agreement, DSUS plans to develop:
- 673 two-bedroom condos
- 477 three-bedroom condos
- 557,000 square feet of retail, including a movie theater
- A 200-room hotel
- A 478,370-square-foot office tower
- A 106,350-square-foot convention center
- A 700-seat event center
Meanwhile, Bloomington, Minnesota-based Skywater (Nasdaq: SKYT) is growing its workforce at the NeoCity site. The company last year took over operations of the Center for Neovation, with plans to create 220 jobs there by 2026. SkyWater moved into the facility after the University of Central Florida ended its financial support of the previous operator, nonprofit Bridg, and laid off most of Bridg’s staff.
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