One November morning, Sunnyvale Mayor Larry Klein woke up to a deluge of texts and emails about a surprise announcement. Did the city burn down? Was there an earthquake? No and no. Instead, it was an influx of interview requests from reporters all over the United States wanting to get the inner scoop. In a recent interview, I spoke with Mayor Klein who openly shared that he was caught off guard, learning about the decision so suddenly. “I didn’t have time to prepare a statement,” he admitted. “I spoke from the heart.”
It became known that Sunnyvale—out of the thousands of cities in the United States—was selected to host the anticipated National Semiconductor Technology Center (NSTC) facility, a key project under the Biden-Harris administration’s CHIPS Act. Mayor Klein couldn’t have been more thrilled. “I’m just overjoyed to see that Sunnyvale was the chosen location,” he told ABC News. “This is a major opportunity for our city.” The NSTC will not only help to boost semiconductor manufacturing and innovation in the U.S., but it will also provide space for the many partners involved in the project. Mayor Klein emphasized the importance of creating housing for the employees and scientists working on the initiative, ensuring that those who will help drive this transformation can live and thrive in Sunnyvale.
So, why Sunnyvale? The city was selected for its unique location at the heart of Silicon Valley, which has long been the global hub for technology and innovation. Silicon Valley attracts the brightest minds—engineers, scientists, and entrepreneurs—who come here seeking opportunities to push the boundaries of technology. Esteemed universities like Stanford and UC Berkeley provide unparalleled research and development facilities. In addition, San Hill– the famous road in Palo Alto– is filled by many venture capital firms with investors and visionaries alike who are willing to take risks on investing in cutting-edge technology or even more so, “bleeding edge” technology. This unique perspective of risk-taking is something that is not only unusual but also embraced by this extraordinary community. Because of this, this thinking allows innovators willing to collaborate to find solutions to solve real-world problems. Tech giants like HP, Intel, and Meta were initially started in a garage in Silicon Valley.
Gavin Newsom, California’s State Governor, said in his statement: “With our state’s global talent pool, world-leading universities and research institutions, and top technology companies, it is no surprise California was selected.” Dee Dee Myers, senior economic advisor to Newsom, adds: “We are thrilled that the Department of Commerce and Natcast chose to locate this critically important facility in Sunnyvale alongside the world’s largest concentration of semiconductor businesses, talent, intellectual property, and investment activity,”
But why exactly is NTSC such a big deal? The global competition for innovation and talent has never been more intense or consequential. For the past few decades, the United States has needed to strengthen its position in the technological arena, as many other countries have learned from and built upon U.S. innovations, often improving on them. The COVID-19 pandemic further highlighted vulnerabilities, causing a significant shortage of microchips and semiconductors worldwide due to supply chain disruptions. Additionally, there is a shortage of a trained workforce in the U.S. to meet this growing demand. Without the establishment of the NSTC, the U.S. would face a major disadvantage in this global race for technological leadership. Sunnyvale was selected because it represents a strategic decision to place the U.S. at the forefront of semiconductor innovation, which is becoming increasingly critical in the global technological landscape. The city’s selection as the site for the NSTC facility is not just a win for Silicon Valley, but a win for the entire country.
