Following up on a plan introduced last year, the city of Fresno has signed a preliminary deal to bring the semiconductor industry to the region.

At the SEMICON West convention in San Francisco on Wednesday, the city signed a memorandum of understanding with trade group SEMI and tech consultant group Silicon Farms Corporation.

“We have an area in Fresno that’s not only open for business, but we’re ready to do business with those from the semiconductor ecosystem,” Fresno Mayor Jerry Dyer told GV Wire over the phone.

The deal also includes the city of Clovis, Fresno State, and the Fresno County Economic Development Corporation.

The six-page MOU outlines the potential for Atherton-based Silicon Farms to develop “hi-tech agricultural and semiconductor technologies,” with possible business parks in both Fresno and Clovis.

Dyer said Fresno would not be a place to produce semiconductors because of the water needed, but Fresno “would be suited” for the packaging and testing components of the industry.

Available land, low comparative housing costs and traffic, and the incoming High-Speed Rail, all make Fresno an attractive spot, Dyer said.

“Fresno is a cost-effective, California-convenient location that is largely untapped and an unknown to the semiconductor industry,” Dyer said. “We’re centrally located … a transportation dream for distribution.”

Fresno State Graduate Involved

Gary Peacock, Silicon Farms’ manager, is a Fresno State graduate. With his wife Melanie, the couple recently made a $7 million commitment to the school. The company’s other manager, Magnus Ryde, is a venture capitalist specializing in semiconductor startups.

Dyer said the industry experience of Peacock and Ryde “opens the doors.”

“(Peacock) has a real good understanding of what part of the semiconductor industry would work well in Fresno,” Dyer said.

Fresno State could develop learning programs in its engineering college. Fresno EDC would help facilitate establishing a hi-tech park and make the proper introductions.

Dyer said there is no timetable or exact location where a high-tech park would be built.

Clovis could use its existing research and technology parks located at Temperance Avenue north of Highway 168.

The parties would also “participate and present at SEMI conferences,” the MOU said. The trade group would also provide support to both Silicon Farms and Fresno State.

Ajit Manocha, SEMI President and CEO, said the semiconductor industry could double its revenue to $1 trillion by 2030.

“Adding new hubs such as the Central Valley will strengthen the semiconductor supply chain in the U.S. and globally,” Manocha said in a Fresno news release.

One goal stated in the MOU is to “attract broad industry, government, and financial community participation.”

Fresno Has Incentive Program

Last year, the city council — led by Nelson Esparza — passed the Fresno CHIPS Incentive Act — providing tax breaks and other incentives for manufacturers to relocate to the Fresno area.

Among the incentive requirements passed last year include creating at least 60 new jobs and a multimillion-dollar investment over 10 years.

Read the MOU