Press Release

U.S. Department of Commerce Invests Approximately $50.8 Million to Boost Central Florida’s Semiconductor Industry Through American Rescue Plan Regional Challenge

WASHINGTON – Today, President Biden will announce the Building Central Florida’s Semiconductor Cluster for Broad-Based Prosperity as one of 21 winners of the $1 billion Build Back Better Regional Challenge, the most impactful regional economic development competition in decades. Funded by President Biden’s American Rescue Plan and administered by the U.S. Department of Commerce’s Economic Development Administration (EDA), the Regional Challenge is awarding approximately $50.8 million in grants to the Building Central Florida’s Semiconductor Cluster for Broad-Based Prosperity, led by the Osceola County Board of County Commissioners, to boost semiconductor industry in central Florida.

With $50.8 million in EDA funding, the Building Central Florida’s Semiconductor Cluster for Broad-Based Prosperity will accelerate the growth of the specialized semiconductor cluster at NeoCITY, a technology park developed in partnership with the state of Florida. The coalition will upgrade advanced manufacturing capabilities to expand research and production of customized semiconductor products, increase production efficiency, and boost education and workforce training.

“The Biden Administration is committed to increasing domestic semiconductor production, strengthening R&D leadership, and growing a diverse workforce for this critical industry,” said U.S. Secretary of Commerce Gina Raimondo. “This is a transformative investment that will diversify the state’s economy, revitalize the community around an industry of the future, and support the development and manufacture of low-volume, highly customized semiconductor products that are vital to Florida’s aerospace, defense, and medical industries.”

“The Economic Development Administration is dedicated to working with communities to assist their strategies for pandemic recovery,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo. “This EDA investment will support Central Florida as it builds a diverse and resilient 21st Century economy.”

“The future of NeoCity innovation is now! This Build Back Better Innovation Grant will help address the microchip shortage, lower costs and boost local high paying jobs,” said Congressman Darren Soto (FL-09). “What a historic day for Osceola County. Thank you President Biden and Secretary Raimondo for your support!”

“Today’s new grant means new good-paying jobs right here in Central Florida,” said Congresswoman Val Demings (FL-10). “Thanks to the American Rescue Plan, which I was proud to support, we are growing an economy that works for everyone and reclaiming the computer chip manufacturing industry from China. This competitive grant will help the growing semiconductor cluster at NeoCITY invest in research and production, plus new training and education programs to make sure that these new jobs are available to all Floridians. I’ll keep fighting in Congress to create new jobs and keep Florida on the cutting edge of science, technology, and manufacturing.”

Building Central Florida’s Semiconductor Cluster for Broad-Based Prosperity is one of 21 winners – each a regional coalition of partnering entities – that will receive awards between $25 million and $65 million to implement an average of six integrative projects that together will enable each region's economic transformation and competitiveness.

The Build Back Better Regional Challenge (BBBRC) is an unprecedented competitive federal grant program that provides each regional coalition with significant investments to tackle a wide variety of projects – including entrepreneurial support, workforce development, infrastructure, and innovation – to drive inclusive economic growth. Each coalition’s collection of projects aims to develop and strengthen regional industry clusters – all while embracing economic equity, creating good-paying jobs, and enhancing U.S. competitiveness globally. Projects span 24 states and include $87 million to two primarily Tribal coalitions and over $150 million for projects serving communities impacted by the declining use of coal.

The 21 BBBRC awardees were chosen from 60 EDA-designated finalists that each received approximately $500,000 in funding and technical assistance to continue developing their cluster strategies. The funding for each coalition is approximate, with awards to be signed later in September. Those 60 finalists were chosen from a Phase 1 applicant pool of 529 applications, which exemplifies the tremendous demand for transformational economic development approaches. EDA will continue to support all 60 finalists with the creation of a Community of Practice that will provide technical support, foster connectedness with peer regions and build capacity.

The Build Back Better Regional Challenge is one of EDA’s many programs aimed at building strong regional economies and supporting community-led economic development. EDA was allocated $3 billion in supplemental funding under the American Rescue Plan to assist communities nationwide in their efforts to build back better by accelerating economic recovery from the coronavirus pandemic and building local economies that will be resilient to future economic shocks. As a part of this funding, EDA allocated $300 million through a Coal Communities Commitment to support coal communities in pandemic recovery and help them create new jobs and opportunities, including through the creation or expansion of a new industry sector. Specifically, EDA has dedicated $100 million of its Build Back Better Regional Challenge funds and $200 million of its Economic Adjustment Assistance funds to directly support coal communities. Grantees for EDA’s full suite of American Rescue Plan programs will be awarded on a rolling basis through September 30, 2022. For more information, visit https://www.eda.gov/ARPA/.

About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA invests in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.