Worcester Business Journal

wbjournal.com | April 3, 2023 | Worcester Business Journal 25 We can reclaim the U.S. edge on chip manufacturing V I E W P O I N T E D I T O R I A L F orty years ago, the U.S. was a global leader in man- ufacturing semiconductors and microelectronics. We not only invented the technology, we invested in research and produced 40% of the world's chips. Today, the U.S. makes just 10%. e CHIPS and Science Act, signed by President Joe Biden in August, is a once-in-a-genera- tion opportunity to reclaim our leadership while investing in the cutting-edge industries key to our country's security and economy. In February, we joined 85+ organiza- tions across eight states in submit- ting a proposal to the Department of Defense CHIPS and Science Act-funded Microelectronics Com- mons program, which will provide $1.6 billion over the next five years to hubs across the country. We want our region to be one. Our goal is to create the North- east Microelectronics Coalition to invest in R&D and manufacturing. Winning this proposal would allow Massachusetts to make transformational in- vestments in innovation, technology, and advanced man- ufacturing. is would mean new jobs, groundbreaking research, programs to prepare a workforce of tomorrow, and much-needed resources for large players and start- ups. We will train highly skilled workers at our commu- nity colleges and universities and connect them to careers in microelectronics. Coalition members could move tech- nologies from the drawing board to design, fabrication, and testing. Our region will become a global leader in the production of chips, the brains behind nearly every piece of modern technology, from consumer goods and electric vehicles to advanced defense technologies. MassTech has been assembling our coalition and devel- oping this proposal with the backing of industry leaders like Analog Devices, BAE Systems, DuPont, MACOM, and Raytheon. Gov. Maura Healey has bolstered our effort by proposing $40 million in matching funds from the Commonwealth in the Immediate Needs Bond Bill filed in January. Our state is already leading this sector in so many ways, and we're drawing from a deep history of in- novation thanks to our world-class universities like MIT, Worcester Polytechnic Institute, Harvard, and UMass. As the state's chief economic development officer and direc- tor of the Commonwealth's Center for Advanced Man- ufacturing, we are keenly aware we need to do the right things now, to ensure in the next decade we are growing our leadership in innovation and technology. With the Northeast Microelectronics Coalition, Massachusetts is stepping up to play a leading role in our nation's future. Yvonne Hao is the Massachusetts secretary of housing and economic development. Christine Nolan is the director of the Center for Advanced Manufacturing at MassTech. BY YVONNE HAO AND CHRISTINE NOLAN Special to WBJ A T H O U SA N D WO R D S B Y R A M Ó N L . S A N D O V A L Reinventing the manufacturing sector Yvonne Hao W hen Chinese manufacturer WuXi Biologics first announced in 2018 it would be the first official anchor tenant of the Worcester biomanufacturing campus e Reactory, the company planned to invest $60 million into a drug manufacturing plant. Four years later, at a topping off ceremony for the facility under construction until 2024, that investment increased to some $300 million, with a near doubling of its footprint. Both domestic and international economic conditions continue to show cause for concern, with the rippling effects of two major bank closures still visible, and uncertainties about inflation and our ability to sidestep a recession remain top of mind. Yet, certain business sectors still provide cause for optimism, and in Central Massachusetts, there's much to like about the staying power of the manufacturing industry. e region has a rich history of making things and appears well positioned to capture the next generation of manufacturing to carry on for another century. e three largest pillars of our regional economy are manufacturing, health care, and higher education, with manufacturing having the longest legacy. Century-plus old manufacturers like Southbridge's Dexter-Russell and Worcester's Polar Beverages remain strong, yet there is a growing diversity of companies in the sector. An international company, WuXi has likely doubled down on its investment in Worcester because the region's three biggest strengths combine to its benefit: a legacy of manufacturing combined with an expertise in healthcare research, all bolstered by the skilled talent coming out of nearby institutes of higher learning. On top of that, the federal government is finally putting its money where its mouth is in terms of investing in our manufacturing muscle, and the nation is trying to shorten supply chains with an emphasis on domestic producers, especially in key sectors. e core strengths of the Central Massachusetts economy could help turn New England into a national leader in that effort. Manufacturers come in all shapes and sizes, ranging from one-person startups to international companies with thousands of employees across multiple global facilities. For every traditional manufacturer, there are dozens – if not hundreds – of new startups, with many early-stage companies getting their start at our universities and business incubators. You can read about many of the best, most innovative companies starting on page 10 of this edition, in WBJ's profiles of the Manufacturing Excellence Award winners. e future appears to be favoring the manufacturing companies of tomorrow, and this region is poised to reap the rewards. The above Editorial is the opinion of the WBJ Editorial Board. The Viewpoint column, the A Thousand Words cartoon, and the Word from the Web commentary represent the opinions of their authors and do not necessarily reflect the views of WBJ or its staff. WBJ welcomes letters to the editor and commentary submissions. Send them to bkane@wbjournal.com. W Christine Nolan W

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