Nelson Esparza speaks at a city hall news conference Tuesday. Behind him, from left, is Will Oliver, Andrew Janz, Genelle Taylor Kumpe and Scott Miller. Photo by Frank Lopez

Fresno City Councilmember Nelson Esparza, in cooperation with Fresno Economic Development Corp. President and CEO Will Oliver, announced plans Tuesday to incentivize businesses to invest and develop semiconductor manufacturing in the city under the federal Creating Helpful Incentives to Produce Semiconductors (CHIPS) program.

At a city hall news conference, Esparza and Oliver discussed the Fresno CHIPs Incentive Act, which aims to bring a competitive edge to the city in attracting the semiconductor industry to be part of the growing U.S. supply chain and innovation ecosystem.

Signed into law during the first year of President Biden’s administration, the CHIPS and Science Act of 2022 aims to strengthen U.S. manufacturing and supply chains and invest more than $50 billion in research and development to ensure the U.S. continues to lead in nanotechnology, clean energy, quantum computing and artificial intelligence.

Incentives under the local proposal, to be considered by the Fresno City Council at its Thursday meeting, would allow eligible companies to receive tax breaks with the city, with the incentives being determined in part by the number of jobs created.

Joined by Oliver and Esparza were Fresno Chamber of Commerce CEO Scott Miller, San Joaquin Valley Manufacturing Association CEO Genelle Taylor Kumpe and City Attorney Andrew Janz.

“This legislation will provide us the edge we need to be competitive in this market as the industry begins to grow again here on U.S. soil. Fresno can lead the way in attracting those companies in the semi-conductor supply chain here in the Central Valley,” Esparza said.

He said the local legislation is complementary to the federal CHIPS act, making companies’ federal applications more competitive for securing local incentives.

Esparza said this legislation will be the first local CHIPS incentive act in California that is not tied to a state or federal municipality.

According to the proposal, the city will be looking at companies willing to commit capital investments of $20 million to $300 million and more.

Incentive amounts could range from 30-35% of capital investments.

Esparza said they are attempting to make a semiconductor hub in Fresno, positioning the city as a center for technological advancement and economic growth.

Oliver noted that the Fresno EDC was awarded $23 million dollars form the Good Jobs Challenge grant, meant to be used for recruiting and training the workforce.

He said the city has a unique position from an economic and logistical standpoint, offering a natural competitiveness and a strategic location between the major seaports of the state — as well as an available workforce.

The Fresno CHIPS Act program will not only attract semiconductor manufacturers, but complementary companies such as suppliers and distributors as well.

Every $15 invested for projects by companies will be matched with $1 locally to match the economic diversification and growth, Oliver said.

“We think this is great precedent moving forward to realign incentives to our community, our race to the top, living wages, access to health care and benefits, and access to jobs created by companies that are here to grow our economy and community,” Oliver said.