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Area Development - Site Selection, Facility Planning and Workforce Development

KLA Continues Plant Expansion in Ann Arbor, Michigan

06/26/2019
KLA, a leading provider of process control and process-enabling solutions across the electronics industry, recently opened its new research and development center in Ann Arbor, Michigan.

The location was selected from more than 350 potential sites in North America, according to Michigan Economic Development Corporation.

Announced in October 2018, the project was expected to generate a total private investment of more than $70 million and create 500 jobs over the next five years. As a result of the investment, the company received MSF approval of Good Jobs for Michigan withholding tax capture for up to eight years, and a $1.5 million Michigan Business Development Program (MBDP) performance-based grant.

The company now plans an additional expansion of the project at its new facility in Ann Arbor Charter Township, a project that will generate an additional $80 million in private investment and create 100 additional new jobs. The MSF said it approved an amendment to the company’s original grant agreement that will increase the $1.5 million MBDP grant awarded in October to $2.5 million. Michigan was chosen for the expansion over competing sites in other states.

In addition, Ann Arbor Charter Township has agreed to provide staff, financial or economic assistance in support of the project.

“We’re excited that KLA is committing additional investment and jobs in Ann Arbor. Since choosing Ann Arbor last year, KLA has proven to be a committed, thoughtful and engaging part of the tech community here, and we’re looking forward to their continued growth,” said Paul Krutko, President & CEO of Ann Arbor SPARK.

KLA’s new R&D center will be a major boost to the semiconductor ecosystem in Michigan, local officials said. KLA partners with both the automotive companies and semiconductor chip manufacturers to improve chip quality and help reduce reliability failures. It’s expected that the demand for semiconductors will increase rapidly with the continued development of automotive connectivity, electrification and autonomous driving features like Advanced Driver Assistance Systems.

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