Indie Michigan Semiconductor Expansion

AyDeeKay LLC, also known as indie Semiconductor, is investing $10 million to build an engineering design center at its existing facility in Auburn Hills, Michigan. The design center will focus on designing integrated circuits and system solutions for the auto industry.

Historical context

• “indie Semiconductor, founded in 2007 and headquartered in Aliso Viejo, Calif., designs next-generation automotive semiconductors and software platforms. The company focuses on developing innovative, high-performance and energy-efficient technology for driver safety and automation (ADAS), user experience and electrification applications. indie has design centers and regional support offices across the U.S. and worldwide, including Auburn Hills, where it employs 26 Michiganders.” – State of Michigan Office of the Governor, March 28, 2023

Project summary

• “AyDeeKay plans to develop an engineering design center at its existing location in Auburn Hills creating up to 180 jobs.” – MLive, March 28, 2023
• “Michigan also gave AyDeeKay, a semiconductor company based in California, a $10 million grant to land its $12.5 million investment in Michigan.” – MLive, March 28, 2023
• “indie is experiencing significant growth and plans to expand its Auburn Hills office to include a best-in-class semiconductor design and testing facility, focusing on the development of highly innovative and integrated circuits and system solutions for the automotive market.” – State of Michigan Office of the Governor, March 28, 2023
• “The project is expected to generate a total capital investment of $12.5 million and create up to 180 high-wage jobs with the support of a $10 million Michigan Business Development Program performance-based grant. Michigan was chosen for the project over competing sites from a number of other states. indie selected Michigan for its next U.S.-based design location because of its rich automotive history and proximity to the North American operations of most automotive manufacturers and their electronic module suppliers.” – State of Michigan Office of the Governor, March 28, 2023

Outcomes, improvements, and practical impact

• “State officials have praised the bill as a boon to Michigan’s auto manufacturing industry, which has been dealt with a spate of production issues tied to a global shortage of computer chips used in the assembly of vehicles. One of the main goals of the bill was to move and expand chip production into the US, which has since translated to more auto industry jobs for Michiganders.” – The Gander, March 31, 2023

Economic impact

• “The MEDC is nearly matching the company’s investment with a $10 million performance-based grant, approved Tuesday, to land the jobs, which are expected to pay an average wage of $2,028 per week plus benefits.” – MICHauto, March 28, 2023
• “The company indicated incentives are necessary to offset the cost of recruiting and retaining talent. The incentives package works out to $55,555 per new job. The state said Indie Semiconductor plans to partner with Michigan universities to build a pipeline of workers.” – MICHauto, March 28, 2023
• “This project represents the first semiconductor firm to create or expand a design team in the state and contributes to MEDC’s ongoing efforts to strengthen Michigan’s leadership in mobility and vehicle electrification. The project is also expected to be a catalyst for the semiconductor industry’s continued growth in the state, building on existing assets and companies such as KLA, Hemlock Semiconductor, Calumet Electronics, SK Siltron and more.” – State of Michigan Office of the Governor, March 28, 2023
• “The company also has ambitions to establish an additional facility in Southeast Michigan, as hiring increases over the next several years. indie is already building strong relationships with Michigan’s universities to support advanced research and development while creating a workforce pipeline for the highly skilled positions required for this industry.” – State of Michigan Office of the Governor, March 28, 2023

Investments like this rely on incentives and partnerships with local universities for workforce development to build a pipeline of workers:

• “Michigan launched last year the Semiconductor Career and Apprenticeship Network Program in anticipation of economic development opportunities created by the federal CHIPS Act, which includes $52 billion for the semiconductor industry. Still, Indie Semiconductor expects ‘difficulties attracting and retaining the workforce associated with the project in Michigan,’ the memo said, because ‘more than 70 percent of the company’s workforce designing semiconductors is located outside the U.S.’ The company indicated incentives are necessary to offset the cost of recruiting and retaining talent. The incentives package works out to $55,555 per new job. The state said Indie Semiconductor plans to partner with Michigan universities to build a pipeline of workers.” – Crain’s Detroit Business, March 28, 2023

Official supporting statements

• Auburn Hills Mayor Kevin R. McDaniel (R-MI): “We are very excited that indie Semiconductor is experiencing such significant growth since locating in Auburn Hills in 2021. … We are honored they have chosen Auburn Hills for their next strategic investment. This reinvestment continues to build on our reputation as a great place to invest and do business. Companies like indie Semiconductor complement our already diverse corporate community and we look forward to continuing to support their success into the future.” – State of Michigan Office of the Governor, March 28, 2023
• Michigan Gov. Gretchen Whitmer (D): “Today’s investments will create hundreds of jobs, bring more of the semiconductor supply chain home, fund housing and community development projects, and drive nearly $60 million of investment statewide. … Our goal is to build an economy of the future and compete with everyone to bring advanced manufacturing home to Michigan. Today’s approvals show that our work is paying off. Let’s keep working together to invest in every region of the state, create good-paying jobs, and build thriving towns offering strong opportunities for families and businesses.” – State of Michigan Office of the Governor, March 28, 2023

Selected clips

• “West Coast Semiconductor Company Plans 180 New Jobs in Auburn Hills” – MICHauto, March 28, 2023
• “Business Expansion Projects Spell Hundreds of New Jobs for Michiganders” – The Gander, March 31, 2023