Delaware's Long-Standing Conservative Organization
VOLUME 43, ISSUE 3
INSIGHTS
Distributed quarterly by mail and email, the Conservative Caucus of Delaware's newsletter contains relevant information and insights from noted leaders, authoritative stakeholders and like-minded members who demonstrate their passion for the truths we hold dear by putting pen to paper!
Semiconductor Jobs Could Spark Delaware Resurgence
For generations, Delaware was a powerhouse of American industry—home to global giants, innovation hubs, and tens of thousands of well-paying manufacturing jobs. But over the past 20 to 30 years, the state has seen a steady erosion of that industrial foundation. Once-thriving plants are now shuttered, iconic names like Chrysler, General Motors, and DuPont have significantly reduced or relocated operations, and thousands of local jobs have vanished. It's time to write a new chapter for Delaware’s future. Delaware has the chance to rebuild its industrial legacy by attracting semiconductor manufacturing to the state, and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act gives us the tools to make that happen.
The Decline of Delaware Industry
The decline of heavy industry in Delaware has been painful and well-documented. Chrysler shut down its Newark assembly plant in 2009, cutting 700 jobs. That same year, General Motors closed its Boxwood Road assembly plant in Newport, a blow that eliminated over 1,000 jobs. AstraZeneca, once a prominent pharmaceutical employer in
Wilmington, has significantly reduced its footprint over the years. Even DuPont—once synonymous with Delaware's economic might—has drastically scaled back its local
presence. Once employed thousands, DuPont has downsized significantly, selling off businesses and shifting focus. Its Seaford nylon production plant alone lost 4,600 jobs. The 2022 sale of its $11 billion Mobility & Materials business marked yet another major shift away from its
manufacturing base in Delaware.
These closures haven’t just left buildings vacant; they’ve left communities fragmented, families struggling, and a generation of young people wondering if they’ll have to leave the state to find an opportunity.
The CHIPS and Science Act:
A Path Forward
Delaware now stands at a crossroads. We can either continue watching as industrial opportunity slips through our fingers, or we can act boldly to restore our economic strength. Fortunately, the federal CHIPS and Science Act gives us a rare opportunity to lead the way.
Signed into law in August 2022, the CHIPS and Science Act is a $280 billion investment in America's technological future. It includes $39 billion in federal grants and incentives specifically to support semiconductor manufacturing in the U.S. - a critical
move to counter foreign dominance
in this sector, reduce supply chain vulnerabilities, and strengthen national security.
The law also includes substantial funding for a Science, Technology, Engineering, and Mathematics (STEM) workforce development, apprenticeship programs, and research and development in advanced technologies. For states like
Delaware, this is not just an incentive; it’s a blueprint for the future.
Why Delaware?
Delaware is uniquely positioned to take advantage of this historic opportunity. With its central location in the Mid-Atlantic, access to major transportation routes like I-95, proximity to East Coast ports and airports, and a somewhat favorable business climate, Delaware checks many of the boxes that semi- conductor manufacturers are looking for.
Additionally, Delaware’s skilled workforce is bolstered by institutions like the University of Delaware, which already produces talent in engineering, chemistry, and other technical disciplines. With the right support, these institutions can expand into semiconductor-specific training programs to prepare students for high-paying careers in this booming field.
Furthermore, DuPont’s continued investment in semiconductor materials shows that parts of the supply chain are already present in Delaware. That existing footprint, combined with state incentives and federal CHIPS Act funds, could make Delaware a highly attractive location for a
fabrication facility.
Delaware’s tax environment is also favorable. Manufacturers benefit from no personal property tax on machinery and no sales tax on out-of-state sales.
Jobs, Opportunity, and the Next Generation
A single semiconductor fabrication plant—known as a “fab”—can employ anywhere from 1,100 to 6,000 workers, depending on its size and complexity. For comparison, TSMC’s Arizona plant is expected to create 6,000 high-tech jobs once they are fully operational. Intel’s new Ohio facility will bring 3,000 high-wage jobs to that state. These aren't just jobs, they're careers in engineering, advanced manufacturing, and information technology. They're exactly the kinds of jobs that Delaware needs.
Beyond direct employment, a semiconductor fab creates thousands of construction jobs and supports a wide network of suppliers, vendors, and small businesses. Apprenticeship and internship programs funded through the CHIPS Act can ensure Delaware students don’t just watch the future being built; they help build it.
Workforce development is a central pillar of the CHIPS and Science Act. This aligns perfectly with Delaware’s strengths. By launching partnerships between manufacturers, local vocational schools, technical colleges, and universities, Delaware can become a national model for how a state trains the next generation for careers in high-tech manufacturing.
Strategic Planning and Infrastructure
Of course, building a semiconductor plant is no small task. It requires extensive planning, infrastructure, and environmental responsibility. Clean water supply, reliable electric grids, and environmental permitting are all essential elements. But Delaware has overcome similar challenges before, and with leadership and coordination between state and federal agencies, these obstacles are surmountable. Environmental standards must be rigorous, but not obstructive. Delaware can and should balance industrial development with environmental stewardship, especially given the state’s history of pollution and cleanup. If done right, a semiconductor plant can be both a technological marvel and a model for clean, efficient industrial development.
A Call to Action
The opportunity is now. The CHIPS and Science Act won’t wait. States across the country are already mobilizing to attract semiconductor investment. Ohio, Arizona, and Texas are already making headlines. Why not Delaware?
We have the location. We have the people. We have vocational high schools. We have higher learning institutions. We have the need. What we need now is vision and action. Let’s not wait for another employer to close its doors before we finally open new ones. Let’s build the foundation for
Delaware’s next economic chapter, one chip at a time.
A semiconductor plant in Delaware would be more than just a factory. It would be a symbol that this small state still dreams big. It would bring dignity back to Delaware workers. It would offer a future to our children. And it would prove that while our industrial past may have dimmed, our future can still shine brightly.
Now is the time to act. Let’s make Delaware a leader in America’s technological revival. ■
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