Introduction

Kansas was gearing up for a major win — a $1.9 billion boost to build a cutting-edge chip factory that promised hundreds of good jobs and a big economic jump.

But the dream just hit a hard wall. The federal government rejected the CHIPS Act grant that would have funded the project, throwing the future of the Burlington factory into serious doubt.

Now, local leaders are left asking: What happens next? This sudden setback shakes up Kansas’ place in the booming semiconductor race and leaves the community searching for new opportunities.

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Quick Take: What You Need to Know

Kansas lost out on a $1.9 billion CHIPS Act grant.

Plans for a major chip factory in Burlington are now in limbo.

EMP Shield’s promise of 1,200 jobs may not happen.

Local leaders are exploring alternative projects for the site.

Political shifts may have influenced the grant rejection.

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A Major Blow to Kansas’ Semiconductor Hopes

Coffey County’s big tech dreams just hit a wall. On May 19, county officials learned their $1.9 billion grant request under the CHIPS and Science Act was turned down.

That funding would have supported a proposed semiconductor factory in Burlington, led by Kansas-based defense tech firm EMP Shield.

Without the grant, the future of the chip factory—and its promise of over 1,200 good-paying jobs—is up in the air.

“This is obviously disappointing,” said County Counselor Wade Bowie, II. “The shift from the Biden to Trump administration may have changed funding priorities.”

What Was the Plan?

Back in February 2023, Kansas Governor Laura Kelly announced that EMP Shield would build a state-of-the-art semiconductor facility in Burlington.

The factory was expected to bring over 1,200 jobs with average salaries of $66,000 and boost the region’s economy.

The site had strong potential. It’s close to I-35 and Highway 75, near Kansas City, with enough land for large-scale industrial development.

But now, with the CHIPS Act grant rejected, that plan is in serious doubt.

What is the CHIPS Act?

The CHIPS and Science Act, signed into law in 2022, is a $52 billion federal program to bring semiconductor production back to the U.S.

The law focuses on:

Creating jobs in chip manufacturing
Reducing U.S. reliance on foreign-made chips
Boosting national security and supply chain resilience
Funding projects in rural areas, like the Midwest

By August 2024, the U.S. Commerce Department reported that the CHIPS Act had backed 23 projects across 15 states, helping to create over 115,000 jobs. It also pushed the U.S. closer to producing 30% of the world’s most advanced chips—up from 0% just a few years ago.

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Why Was Kansas Denied?

There’s no official answer yet. But according to Bowie, the switch from the Biden to Trump administration may have shifted federal priorities.

The CHIPS Act emphasized private-public partnerships and higher education involvement. Kansas officials say they met those requirements—but that may not have been enough.

Local officials plan to get more information during the next county commission meeting on June 2.

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What’s Next for the Site?

Not all hope is lost. Coffey County is now considering turning the Burlington site into a broader industrial park.

Economic Development Director Jenny Tatman showed commissioners a new concept map. One idea includes attracting a solar panel manufacturing facility. The location remains strategic for shipping, labor, and infrastructure.

“We’ll keep pushing for high-quality jobs, This is still a great site for future development.”Tatman said.

CHIPS Act by the Numbers (as of August 2024)

State	Projects Funded	Funding ($B)	Jobs Created
Arizona	5	7.5	25,000
Texas	4	6.0	20,000
New York	3	4.0	15,000
Ohio	2	3.0	10,000
Kansas	0	0	0

Source: U.S. Department of Commerce

Conclusion

Kansas was betting big on chips. The $1.9 billion rejection under the CHIPS Act is a huge blow. But county leaders say they’re not giving up. With the right partnerships and persistence, Burlington could still become a hub for advanced manufacturing.

Follow @Techovedas our updates for the latest news, trends, and opportunities in the semiconductor and Artificial Intelligence world.

$1.9 Billion REJECTED !! : Kansas CHIP GRANT Hits Major Setback

Introduction

Quick Take: What You Need to Know