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Five Reasons the Lehigh Valley is Well-Positioned to be a National Tech Hub

Published Monday, August 21, 2023
by Paul Muschick

 

The Lehigh Valley is seeking to be named as a Tech Hub by the U.S. Economic Development Administration, a designation that could qualify the region for $50 to $75 million in federal technology investment.

Tech Hubs – officially termed Regional Technology and Innovation Hubs – were created by the CHIPS and Science Act of 2022 to supercharge ecosystems of innovation for technologies that are essential to economic and national security. 

The Lehigh Valley is seeking to be designated as a Tech Hub for semiconductors, in particular where their production overlaps with advanced manufacturing and advanced materials sciences.

The coalition seeking the designation includes tech companies, colleges and universities, state and local governments, and partners in labor, economic development, community services, and workforce development.

The application was filed Aug. 15 on behalf of the coalition by Lehigh Valley Economic Development Corp. (LVEDC). Here are five of the major arguments the consortium made for why the federal government should invest in the Lehigh Valley’s semiconductor and technology industry.

Strong Base to Grow From

The Lehigh Valley already is home to many semiconductor and technology firms. They include some of the biggest names in the field – Broadcom, Intel, Infinera, Cisco, Coherent – as well as smaller startups such as iDEAL Semiconductors.

The operations of those companies in the Lehigh Valley include production; chip design; component assembly and packaging; research and development; and quality assurance testing. These operations form a strong base that could grow quickly with federal investment.

Those companies are supported by a host of advanced materials science companies in the Lehigh Valley, including the world headquarters of Air Products, as well as EMD Electronics, Evonik, and Air Liquide.

Innovation Pipeline

The Lehigh Valley has a strong network that facilitates delivery of new technologies, helping turn innovative ideas into viable, job-creating businesses.

The network includes Ben Franklin Technology Partners of Northeastern Pennsylvania, located on the campus of Lehigh University. Ben Franklin Northeast is part of a state-funded system that supports startup technology companies. It has attracted nearly $3 billion in outside capital and operates a 130,000 square-foot incubator space that is home to more than 30 startup tech companies.

Lehigh University, one of the top-ranked research universities in the country, envisions in its master plan the development of an on-campus technology center that would complement Ben Franklin’s work.

Lafayette College’s Hanson Center for Inclusive STEM Education is one of only two programs in the United States that is dedicated to making STEM programs, classrooms, and cultures more inclusive for students from diverse backgrounds.

Location

A major industrial and supply chain center for the East Coast, the Lehigh Valley is close to New York City and Philadelphia and has convenient access to major ports, freight rail lines, airports that serve domestic and international locations, and interstate highways. The Lehigh Valley is within a day’s drive of one-third of U.S. consumers.

The Lehigh Valley’s proximity to chip fabrication projects being developed by Intel in Ohio and by Micron in New York places the region at the heart of the re-emerging national semiconductor innovation network in the Mid-Atlantic region.

Growing Population and Workforce

The Lehigh Valley is growing and is projected to continue to grow. It has a population nearing 700,000 and a labor force of 1.7 million within a one-hour drive.

The region has 11 colleges and universities that graduate more than 10,000 students every year. Those graduates include nearly 2,000 with two-year degrees from Northampton Community College and Lehigh Carbon Community College, and 1,700 with advanced degrees, many in fields relevant to technology companies.

The Lehigh Valley is located within a broader region that is a hub for higher education. Within a four-hour drive, there are 3 million students attending colleges and universities, including some of the top-rated research institutions in the country.

History of Regional Collaboration

The companies, organizations, and institutions of the Lehigh Valley work together for the good of the community.

A coalition of employers, educational institutions, local and state government, labor, and workforce organizations – brought together by LVEDC – partner for economic development success.

LVEDC’s Talent Strategies Council, a partnership with Workforce Board Lehigh Valley, has strengthened collaboration among employers, schools, and community organizations to address skills gap issues, career readiness, and career pathway exploration.

That partnership has positioned the Lehigh Valley to train, educate, and upskill workers, with a particular focus on underserved and under-represented populations.

(Photos of Infinera (top) and Broadcom (bottom) by Donna Fisher Photography)