Earlier this month, California Governor Gavin Newsom announced that more than $149 million in grants and tax credits is awarded to 12 companies in the state, creating nearly 6,000 full-time jobs and bringing in an estimated $1.3 billion in private investment over the next five years. Recipient companies include manufacturers and developers of electric aircraft, semiconductors, and artificial intelligence (AI). The funding, from the Governor’s Office of Business and Economic Development’s (GO-Biz) CalCompetes program, is awarded to companies expanding operations in California and advancing the state’s semiconductor manufacturing capabilities.
Said Gov. Newsom, “Investing in ingenuity and innovation works, and no place does it better than California. Businesses like the ones we’re investing in today will drive the future of our economy, helping create thousands of good-paying jobs and bringing billions in economic investment to communities up and down the state.”
Joby Aviation, a California-based leader in the electric aircraft field, plans over $40 million of capital investments and the creation of nearly 700 new jobs as part of its expansion efforts in Santa Cruz and Marina.
AIBOT received a $15 million grant to further its manufacturing and R&D capabilities in Long Beach (below) and Mojave as it continues developing artificial intelligence software and building autonomous electric aircrafts. The company plans to create almost 700 new jobs and invest nearly $500 million across the two locations.
Semiconductors & Microchips
Two California businesses will be expanding their efforts to increase domestic production of the next generation of semiconductors and microchips in the hopes of attracting additional federal investments through the CHIPS Act.
Tynergy received a $15 million grant to relocate its headquarters from Wyoming to Fresno, where it will manufacture semiconductors and energy storage systems. In the process, the company will create at least 500 full-time jobs and make nearly $21 million of capital investments in the region.
Infinera, a semiconductor chip developer and manufacturer, received a $14 million grant to expand its operations in San Jose and Sunnyvale. Between the two locations, it is planning more than $180 million of capital investments and the creation of nearly 250 jobs.
AI, AR, and EV
Helm.ai and Humane, both of whom will use their award to further develop artificial intelligence software, will be expanding their respective operations in San Francisco and the broader Bay Area.
Snapchat, which is expanding operations in Palo Alto, San Francisco and Santa Monica, will use its CalCompetes award to advance their manufacturing capabilities for its augmented reality devices.
Sparkz, a lithium iron phosphate battery manufacturer, received an $11.2 million grant to create 500 new, full-time jobs and make over $83 million in capital investments for production of EV batteries in Rancho Cordova.
Access the PDF that contains the complete list of approved companies and award amounts.
Dee Dee Myers, Senior Advisor and GO-Biz Director, said, “With the return of the grant program this year, we’re excited to continue building on the incredible success of CalCompetes over the last decade. Supporting these types of forward-thinking, entrepreneurial companies helps guarantee that California’s innovation economy will continue to provide family-supporting jobs and return sizeable investments back to the state for years to come.”
The California Competes Tax Credit, created in 2013, evaluates applications based on the factors required by statute, including total jobs created, total investment, wages and, economic impact, and strategic importance. In 2022, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to businesses each year through 2028.
The California Competes Grant Program was created in 2021 and extended each of the following two years, with a total of $120 million allocated for the 2023-24 fiscal year. A priority is to assist businesses that cannot take advantage of a non-refundable tax credit and is one of the state’s main incentive programs to leverage federal funds available under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act.