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Can Fresno Be a Microchip Manufacturing Hub? Esparza, Business Leaders Unveil Plan
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By David Taub, Senior Reporter
Published 6 months ago on
October 31, 2023

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Could Fresno be a destination for technological innovation?

City Councilman Nelson Esparza is introducing the CHIPS Incentive Program — set to be discussed at Thursday’s city council meeting. He offered a preview at a Tuesday news conference at City Hall.

Eligible companies would be able to negotiate tax breaks with the city. The goal is to recruit companies that receive federal funding for microchip manufacturing to come to Fresno. The exact amount of how much Fresno would spend was not revealed.

The pandemic exposed a major semiconductor shortage. Congress passed incentive programs in 2022 to increase domestic production. The act provided $53 billion for semiconductor research and development.

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

Esparza said Fresno could be the first city to offer incentives. Local or state incentives are required for companies applying for federal dollars.

Incentives, Esparza said, would be tied to the number of jobs created. Fresno will aim at companies looking to invest $20 million to $300 million. Each plant could employ up to 70 people.

From left to right: Will Oliver of Fresno EDC, City Attorney Andrew Janz, Fresno City Councilman Nelson Esparza, Genelle Taylor Kumpe of SJV Manufacturing Alliance, and Scott Miller from the Fresno Chamber of Commerce, support an incentive plan for chip manufacturing in the city. (GV Wire/David Taub)

Fresno ‘Uniquely Positioned’

Esparza’s proposal has buy-in from the Fresno Economic Development Corporation, Fresno Chamber of Commerce, and the San Joaquin Valley Manufacturing Alliance, all which had representatives at the news conference.

“Fresno was uniquely positioned to take part in this program and legislation,” said Fresno EDC president/CEO Will Oliver.

Oliver cited Fresno’s geographic location in the center of the state; multiple daily flights to Phoenix, where chips manufacturing plants are set to open; and an available workforce.

Fresno EDC was recently awarded a $23 million Good Jobs Challenge grant, which will help with recruiting and training employees.

“The semiconductor industry is really on the cusp of rapid expansion. And Fresno, I believe, is well poised to capitalize on this opportunity. Implementing this incentive has the power to attract new businesses, create high-quality jobs, and foster innovation within our city,” said Genelle Taylor Kumpe, CEO of the manufacturing alliance.

Where Would Plants Go?

The locations for future plants — whether those that produce chips or any parts along the supply chain — are an open question.

“It’s going to depend on ultimately the zoning and exactly what the uses are,” Esparza said.

Esparza Oliver said it would be on a “case-by-case” basis.

Environmental groups have strongly objected to industrial projects, especially in the south side of Fresno.

“Any mitigating measures that we need to take or that are proposed by individuals or groups, I mean, will certainly be taken into consideration. But we’re really taking this one step at a time,” Esparza said.

Oliver did not specify if existing buildings in Fresno could meet the semiconductor industry’s needs.

“The CHIPS Act allows for modernization and renovation of existing buildings, as well as the construction of new facilities. We anticipate the federal funding of that aspect will cover those activities,” Oliver said.

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David Taub,
Senior Reporter
Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email

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