Colorado Springs’ aspirations as “Silicon Mountain” got a lift from the City Council last week, when it unanimously approved a proposal to the state to set up the Colorado Springs CHIPS Zone. It should help incentivize the area’s semiconductor industry and its overall tech sector.

As The Gazette explained in a Friday news report, a CHIPS zone would allow Colorado Springs to compete for new investment and high-paying jobs by accessing state and federal incentives via the Colorado CHIPS Zone Act and the national CHIPS and Science Act, enacted by Congress in 2022. Those programs already help support companies seeking to expand in semiconductor design, production and advanced manufacturing.

Having a Colorado Springs iteration of that effort will allow the Pikes Peak region to leverage the federal and state programs with a hyperlocal focus in landing and expanding high-paying employers in the industry. Without drawing down city revenue, a local CHIPS zone would let our community tap into benefits of the state and federal programs. 

That means if the Colorado Economic Development Commission approves the Colorado Springs proposal next month, the local CHIPS zone would let eligible businesses apply for state income tax credits for new employees, research and development, investment and workforce training. 

It’s all part of the original federal initiative passed through bipartisan legislation to give a leg up and a secure footing to U.S. makers of economically and strategically pivotal microchips and the semiconductors that sustain them. City officials say the tools would let a Springs CHIPS zone strengthen local supply chains, boost innovation, and keep high-tech jobs rooted in the community.

Our community’s ambitions to become a global epicenter for the industry are long-standing and have been taking shape. A move like this should accelerate the endeavor.

“With their approval of the proposed CHIPS zone boundaries, we’re reinforcing our legacy as a high-tech manufacturing hub and accelerating our momentum as ‘Silicon Mountain,’” Mayor Yemi Mobolade said in a press statement.

“From semiconductors to advanced manufacturing, this new designation helps ensure that businesses big and small have the tools to grow, innovate and stay rooted right here in Colorado Springs,” the mayor said. “It’s a smart, strategic move for our economy and for our future.”

As The Gazette noted in its report, the Colorado Springs CHIPS Zone also would retain existing advanced manufacturing companies now operating in the area. Those include Microchip Technologies and Entegris.

“This initiative represents the kind of collaboration that defines our region,” said the city’s Economic Development Manager Shawna Lippert. “Our partners at El Paso County and the (Colorado Springs Chamber of Commerce & Economic Development Corp.) have been instrumental in shaping this proposal. Together, we’re creating the right environment for advanced manufacturing to thrive, supporting local companies, attracting new investment and driving high-quality job growth across the Pikes Peak region.”

The proposal not only bodes well for job creation and economic development in the tech sector in general but also poses considerable potential for synergy with the Pikes Peak Region’s defense industry. 

As we noted here just the other day, Colorado Springs is poised to play a significant role in the proposed Golden Dome U.S. missile defense system. Our city and entire state’s aerospace and tech sectors are anticipated to maker extensive investment in that groundbreaking endeavor. The timing couldn’t be better for an assist to semiconductors and advanced manufacturing. 

Once again, the Springs is ready to make big strides.