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  • Writer's pictureRealFacts Editorial Team

Here Are 20 Cities Best Poised to Get Chip Investment

sign with the chips and science act

To bolster national security and technological competitiveness, Congress passed the CHIPS and Science Act of 2022, allocating $280 billion for research, development, and manufacturing of semiconductor chips. This legislative milestone targets the resurgence of American chip manufacturing prowess and promises a golden opportunity for real estate investors. As the U.S. ramps up efforts to domesticate semiconductor production, certain metropolitan areas are poised to become hotbeds of activity, driving demand for industrial real estate and spurring economic growth.

The CHIPS Act: A New Dawn for American Manufacturing

The CHIPS and Science Act directs $50 billion specifically toward semiconductor research, development, and manufacturing within the United States. Of this, $39 billion is earmarked for investment in facilities and equipment, overseen by the CHIPS Program Office, with an additional $11 billion funneled into developing a robust domestic R&D ecosystem through the CHIPS Research and Development Office. This initiative aims to not only strengthen America’s technological infrastructure but also to mitigate the risks associated with foreign dependencies in critical industries.

Dallas: The Beacon of Texas' Industrial Might

Dallas emerges as a front-runner in this new industrial landscape. Texas, the largest exporter of manufactured goods in the U.S., offers robust logistics, distribution networks, and a thriving IT sector. Companies like Siemens, Ballard Power Systems, and GlobiTech are expanding their presence here, alongside local chip giant Texas Instruments. For real estate investors, Dallas represents a prime opportunity to tap into a rapidly growing market with a strong foundation in manufacturing.

Chicago: The Heartland of Manufacturing Potential

With a vast inventory of industrial manufacturing space and a workforce second only to Los Angeles, Chicago stands ready to capitalize on the semiconductor boom. The city's infrastructure and talent pool make it a magnet for chip manufacturers. Real estate investors can look forward to significant demand for industrial spaces, driven by the influx of high-tech companies seeking to establish or expand their operations.

Phoenix: The Rising Star of the Southwest

Phoenix is quickly becoming a major hub for semiconductor manufacturing, with three Taiwan Semiconductor Company (TSMC) plants under construction and Intel expanding its facilities. The city's ample space for new fabrication plants makes it an attractive destination for chip manufacturers. For real estate investors, Phoenix offers a fertile ground for investment, with the potential for high returns as the city cements its status as a key player in the semiconductor industry.

Detroit: A Legacy of Manufacturing Reinvented

Detroit’s extensive manufacturing space, although in need of renovation, positions it well for a resurgence. Known for its automotive industry, Detroit can leverage its manufacturing expertise and infrastructure to attract semiconductor companies. Real estate investors have a unique opportunity to invest in the renovation and repurposing of industrial spaces, contributing to the city's economic revitalization.

Los Angeles: A Diverse Industrial Powerhouse

Los Angeles may lack the greenfield space of other cities, but its diverse economy and educated workforce make it a formidable contender. The city's ability to produce a wide array of goods positions it well for the semiconductor boom. Real estate investors can benefit from the high demand for industrial spaces, even as space for new fabrication plants remains scarce.

Cleveland, New York City, and Beyond: Regional Hubs with Untapped Potential

Cities like Cleveland, with its strong railroad infrastructure and affordable industrial spaces, and New York City, with its robust manufacturing industry and extensive logistics capabilities, are also poised to benefit. Austin, Houston, and Cincinnati present additional opportunities with their growing manufacturing sectors and favorable business environments.

Smaller markets like Elkhart-Goshen and Scranton offer unique advantages, such as specialized manufacturing capabilities and affordability. These areas, while less prominent, hold significant potential for real estate investors looking to capitalize on niche markets.

The Real Estate Investment Opportunity

The CHIPS Act represents a pivotal moment for real estate investors. As semiconductor companies seek to establish and expand their U.S. operations, the demand for industrial spaces will surge. Investors who recognize the potential in these top 20 metropolitan areas can position themselves at the forefront of a new wave of industrial growth.

The opportunities are vast and varied from renovating existing spaces in Detroit to developing new facilities in Phoenix. Cities with strong manufacturing foundations, like Dallas and Chicago, offer stable investments with the promise of steady growth. Meanwhile, emerging hubs like Phoenix and Austin provide high-risk, high-reward scenarios for those willing to venture into rapidly evolving markets.


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