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Indiana Tests if the Heartland Can Transform Into a Chip Hub

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Indiana Tests if the Heartland Can Transform Into a Chip Hub

Over the past 14 months, Indiana began converting 10,000 acres of corn and bean fields into an innovation park. State leaders met with the chief executives of semiconductor giants in South Korea, Taiwan and Japan. And they hosted top Biden administration officials to show off a $100 million expansion of chip research and development facilities at a local university.

The actions were driven by one main goal: to turn Indiana into a microchip manufacturing and research hub, almost from scratch.

“We’ve never done anything at this scale,” said Brad Chambers, who was Indiana’s commerce secretary in charge of economic development. “It’s a multibillion-dollar commitment by the state to be ready for the transitions that are happening in our global economy.”

Indiana’s moves are a test of the Biden administration’s efforts to stimulate regional economies through the $52 billion CHIPS and Science Act, a landmark package of funding that is planned to begin going out the door in the next few months. The program is intended to bolster domestic manufacturing and research of semiconductors, which act as the brains of computers and other products and have become central to the U.S. battle with China for tech primacy.

The Biden administration has promised that the CHIPS Act will seed high-paying tech jobs and start-ups even in places with little foundation in the tech industry. In a speech in May last year, Commerce Secretary Gina Raimondo, who oversees the chips program, said she was looking at how the program would help “different places in the heartland of America.”

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She added, “I think we will really unleash an unbelievable torrent of entrepreneurship and capital opportunity.”

That makes Indiana a prime case study for whether the administration’s efforts will pan out. Unlike Arizona and Texas, which have long had chip-making plants, Indiana has little experience with the complicated manufacturing processes underlying the components, beyond electric vehicle battery manufacturing and some defense technology projects that involve semiconductors.

Indiana now wants to catch up to other places that have landed big chip manufacturing plants. The push is supported by Senator Todd Young, a Republican from Indiana, who was a co-author on the CHIPS Act and has been a leading voice on increasing funds for tech hubs. Companies and universities in Indiana have applied for multiple CHIPS Act grants, with the aim of winning awards not only for chip manufacturing but also for research and development.

Some economists said the Biden administration’s goals of turning farmland into advanced chip factories might be overly ambitious. It took decades for Silicon Valley and the Boston tech corridor to thrive. Those regions succeeded because of their strong academic research universities, big anchor companies, skilled workers and investors.

Many other areas don’t have that combination of assets. Indiana has for decades faced a brain drain among some of its more educated young people who flock to larger cities for work, according to the Indiana Chamber of Commerce. Some industrial policy proponents see the investments as a way to reverse that exodus, as well as a broader trend toward deindustrialization that hollowed out communities in the Rust Belt.

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But it’s unclear whether the program can achieve such ambitious goals — or whether the Biden administration will judge it to be more effective to spread out investments around the country or concentrate them in a few key hubs.

“Many pieces have to come together,” said Mark Muro, a senior fellow at the Brookings Institution. He added that the federal government’s plan to initially put $500 million into tech hubs was too small and estimated it would take $100 billion in government aid to create 10 sustainable tech hubs.

Indiana does have some advantages. The state has ample land and water — which are necessary for large chip factories that use water to cool equipment and rinse silicon wafers — and it has relatively stable weather for the highly sensitive production process. It also has Purdue University, with an engineering school that has promised to turn out the technicians and researchers needed for chip production.

Yet the state faces stiff competition. In January 2022, Indiana lost a bidding war to Ohio over plans by Intel, the big U.S. chip-maker, to build two factories valued at $20 billion.

“We learned a lot of lessons,” Mr. Chambers said about the failure. The biggest, he said, was to have a more attractive package of land, infrastructure and work force programs ready to offer big chip companies.

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A year later, Indiana won a $1.8 billion investment from SkyWater, a Minneapolis-based chip-maker, to build a factory with 750 jobs adjacent to Purdue’s campus.

State leaders acknowledge that any tech transformation could take years, especially if there is no anchor plant by even larger chip manufacturers such as TSMC, the world’s biggest maker of cutting-edge chips.

Mr. Young said he and other state leaders were in talks with big chip makers for a contract that would compare to the $20 billion that Intel committed to Ohio. But “all net new job creation in my lifetime has been created by new firms and young firms,” he said.

Indiana’s chip-making metamorphosis is now centered on a tech park, LEAP Innovation District, in the town of Lebanon near Interstate 65, which connects Indianapolis and Purdue in West Lafayette. The town is surrounded by 15,000 square miles of corn and bean farms.

The park began taking shape along with the CHIPS Act. In 2019, Mr. Young was a co-author of the Endless Frontier Act with Senator Chuck Schumer, a Democrat of New York and then the Senate minority leader. The bill was the precursor to the CHIPS Act.

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As the bill wound through Congress, Mr. Young was in regular contact with Eric Holcomb, Indiana’s governor, and Mitch Daniels, then Purdue’s president, on details of the proposal. Mr. Young said Indiana’s manufacturing roots would be its asset, if the state’s factory sector could transition to making advanced chips.

“I realized that Indiana and, more broadly, the heartland stood to disproportionately benefit from the investments that we would be making,” he said in an interview last month.

Mr. Holcomb and Mr. Chambers then created a plan for a tech manufacturing park. Within months, they began buying corn and bean farms in Lebanon for what became the LEAP Innovation District.

In May 2022, Mr. Holcomb unveiled LEAP and began installing new water and power lines and a new road there. Mr. Holcomb, Mr. Chambers and Mr. Young also traveled to more than a dozen countries to meet with the executives of chip companies like SK Hynix and TSMC. They offered cheap rent in the LEAP district, tax incentives, access to labs and researchers at Purdue, and training programs at the local Ivy Tech Community College.

Some of the work paid off. When Indiana beat out four other states for SkyWater’s $1.8 billion chip facility, the company said it was impressed by the coordination between state leaders and Purdue’s new president, Mung Chiang, who launched the nation’s first semiconductor degree programs to nurture workers for chip makers.

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In September, Mr. Chiang invited Ms. Raimondo and Secretary of State Antony J. Blinken to tour Purdue’s clean rooms for chip research and to see plans for a $100 million expansion of semiconductor research and development, including 50 new faculty to work on advanced chip science.

“I think you have all the ingredients,” Ms. Raimondo said in a discussion with Mr. Holcomb and Mr. Chiang during the visit.

Indiana officials now await word on how much CHIPS Act funding they may get. Some early results from the LEAP district initiative offer a mixed picture of where things might go.

In May 2022, the park landed its first tenant — Eli Lilly, the pharmaceutical company, not a chip maker.

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Video: Biden Apologizes for U.S. Mistreatment of Native American Children

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Biden Apologizes for U.S. Mistreatment of Native American Children

President Biden offered a formal apology on Friday on behalf of the U.S. government for the abuse of Native American children from the early 1800s to the late 1960s.

The Federal government has never, never formally apologized for what happened until today. I formally apologize. It’s long, long, long overdue. Quite frankly, there’s no excuse that this apology took 50 years to make. I know no apology can or will make up for what was lost during the darkness of the federal boarding school policy. But today, we’re finally moving forward into the light.

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Video: Los Angeles Bus Hijacked at Gunpoint

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Los Angeles Bus Hijacked at Gunpoint

The person suspected of hijacking a bus which killed one person, was taken into custody after an hourlong pursuit by the Los Angeles Police Department early Wednesday morning.

“Get him.”

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The Youngest Pandemic Children Are Now in School, and Struggling

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The Youngest Pandemic Children Are Now in School, and Struggling

The pandemic’s babies, toddlers and preschoolers are now school-age, and the impact on them is becoming increasingly clear: Many are showing signs of being academically and developmentally behind.

Interviews with more than two dozen teachers, pediatricians and early childhood experts depicted a generation less likely to have age-appropriate skills — to be able to hold a pencil, communicate their needs, identify shapes and letters, manage their emotions or solve problems with peers.

A variety of scientific evidence has also found that the pandemic seems to have affected some young children’s early development. Boys were more affected than girls, studies have found.

“I definitely think children born then have had developmental challenges compared to prior years,” said Dr. Jaime Peterson, a pediatrician at Oregon Health and Science University, whose research is on kindergarten readiness. “We asked them to wear masks, not see adults, not play with kids. We really severed those interactions, and you don’t get that time back for kids.”

The pandemic’s effect on older children — who were sent home during school closures, and lost significant ground in math and reading — has been well documented. But the impact on the youngest children is in some ways surprising: They were not in formal school when the pandemic began, and at an age when children spend a lot of time at home anyway.

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The early years, though, are most critical for brain development. Researchers said several aspects of the pandemic affected young children — parental stress, less exposure to people, lower preschool attendance, more time on screens and less time playing.

Yet because their brains are developing so rapidly, they are also well positioned to catch up, experts said.

The youngest children represent “a pandemic tsunami” headed for the American education system, said Joel Ryan, who works with a network of Head Start and state preschool centers in Washington State, where he has seen an increase in speech delays and behavioral problems.

Not every young child is showing delays. Children at schools that are mostly Black or Hispanic or where most families have lower incomes are the most behind, according to data released Monday by Curriculum Associates, whose tests are given in thousands of U.S. schools. Students from higher-income families are more on pace with historical trends.

But “most, if not all, young students were impacted academically to some degree,” said Kristen Huff, vice president for assessment and research at Curriculum Associates.

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Recovery is possible, experts said, though young children have not been a main focus of $122 billion in federal aid distributed to school districts to help students recover.

“We 100 percent have the tools to help kids and families recover,” said Catherine Monk, a clinical psychologist and professor at Columbia, and a chair of a research project on mothers and babies in the pandemic. “But do we know how to distribute, in a fair way, access to the services they need?”

What’s different now?

“I spent a long time just teaching kids to sit still on the carpet for one book. That’s something I didn’t need to do before.”

David Feldman, kindergarten teacher, St. Petersburg, Fla.

“We are talking 4- and 5-year-olds who are throwing chairs, biting, hitting, without the self-regulation.”

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Tommy Sheridan, deputy director, National Head Start Association

Brook Allen, in Martin, Tenn., has taught kindergarten for 11 years. This year, for the first time, she said, several students could barely speak, several were not toilet trained, and several did not have the fine motor skills to hold a pencil.

Children don’t engage in imaginative play or seek out other children the way they used to, said Michaela Frederick, a pre-K teacher for students with learning delays in Sharon, Tenn. She’s had to replace small building materials in her classroom with big soft blocks because students’ fine motor skills weren’t developed enough to manipulate them.

Michaela Frederick, a pre-K teacher in Sharon, Tenn., playing a stacking game with a student.

Aaron Hardin for The New York Times

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Preschoolers do not have the same fine motor skills as they did prepandemic, Ms. Frederick said.

Aaron Hardin for The New York Times

Perhaps the biggest difference Lissa O’Rourke has noticed among her preschoolers in St. Augustine, Fla., has been their inability to regulate their emotions: “It was knocking over chairs, it was throwing things, it was hitting their peers, hitting their teachers.”

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Data from schools underscores what early childhood professionals have noticed.

Children who just finished second grade, who were as young as 3 or 4 when the pandemic began, remain behind children the same age prepandemic, particularly in math, according to the new Curriculum Associates data. Of particular concern, the students who are the furthest behind are making the least progress catching up.

The youngest students’ performance is “in stark contrast” to older elementary school children, who have caught up much more, the researchers said. The new analysis examined testing data from about four million children, with cohorts before and after the pandemic.

Data from Cincinnati Public Schools is another example: Just 28 percent of kindergarten students began this school year prepared, down from 36 percent before the pandemic, according to research from Cincinnati Children’s Hospital.

How did this happen?

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“They don’t have the muscle strength because everything they are doing at home is screen time. They are just swiping.”

Sarrah Hovis, preschool teacher, Roseville, Mich.

“I have more kids in kindergarten who have never been in school.”

Terrance Anfield, kindergarten teacher, Indianapolis

One explanation for young children’s struggles, childhood development experts say, is parental stress during the pandemic.

A baby who is exposed to more stress will show more activation on brain imaging scans in “the parts of that baby’s brain that focus on fear and focus on aggression,” said Rahil D. Briggs, a child psychologist with Zero to Three, a nonprofit that focuses on early childhood. That leaves less energy for parts of the brain focused on language, exploration and learning, she said.

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During lockdowns, children also spent less time overhearing adult interactions that exposed them to new language, like at the grocery store or the library. And they spent less time playing with other children.

Kelsey Schnur, 32, of Sharpsville, Pa., pulled her daughter, Finley, from child care during the pandemic. Finley, then a toddler, colored, did puzzles and read books at home.

But when she finally enrolled in preschool, she struggled to adjust, her mother said. She was diagnosed with separation anxiety and selective mutism.

“It was very eye-opening to see,” said Ms. Schnur, who works in early childhood education. “They can have all of the education experiences and knowledge, but that socialization is so key.”

Preschool attendance can significantly boost kindergarten preparedness, research has found. But in many states, preschool attendance is still below prepandemic levels. Survey data suggests low-income families have not returned at the same rate as higher-income families.

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“I have never had such a small class,” said Analilia Sanchez, who had nine children in her preschool class in El Paso this year. She typically has at least 16. “I think they got used to having them at home — that fear of being around the other kids, the germs.”

Time on screens also spiked during the pandemic — as parents juggled work and children cooped up at home — and screen time stayed up after lockdowns ended. Many teachers and early childhood experts believe this affected children’s attention spans and fine motor skills. Long periods of screen time have been associated with developmental delays.

Heidi Tringali, an occupational therapist in Charlotte, N.C., playing with a patient.

Travis Dove for The New York Times

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Children are showing effects of spending time on screens, Ms. Tringali said, including shorter attention spans, less core strength and delayed social skills.

Travis Dove for The New York Times

Heidi Tringali, a pediatric occupational therapist in Charlotte, N.C., said she and her colleagues are seeing many more families contact them with children who don’t fit into typical diagnoses.

She is seeing “visual problems, core strength, social skills, attention — all the deficits,” she said. “We really see the difference in them not being out playing.”

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Can children catch up?

“I’m actually happy with the majority of their growth.”

Michael LoMedico, second-grade teacher, Yonkers, N.Y.

“They just crave consistency that they didn’t get.”

Emily Sampley, substitute teacher, Sioux Falls, S.D.

It’s too early to know whether young children will experience long-term effects from the pandemic, but researchers say there are reasons to be optimistic.

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“It is absolutely possible to catch up, if we catch things early,” said Dr. Dani Dumitriu, a pediatrician and neuroscientist at Columbia and chair of the study on pandemic newborns. “There is nothing deterministic about a brain at six months.”

There may also have been benefits to being young in the pandemic, she and others said, like increased resiliency and more time with family.

Some places have invested in programs to support young children, like a Tennessee district that is doubling the number of teaching assistants in kindergarten classrooms next school year and adding a preschool class for students needing extra support.

Oregon used some federal pandemic aid money to start a program to help prepare children and parents for kindergarten the summer before.

For many students, simply being in school is the first step.

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Sarrah Hovis, a preschool teacher in Roseville, Mich., has seen plenty of the pandemic’s impact in her classroom. Some children can’t open a bag of chips, because they lack finger strength. More of her students are missing many days of school, a national problem since the pandemic.

But she has also seen great progress. By the end of this year, some of her students were counting to 100, and even adding and subtracting.

“If the kids come to school,” she said, “they do learn.”

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