Announcement of Successful CHIPS Act (Phase 1) “Tech Hub” Designation

TO: The Gonzaga University Community
FROM: Thayne M. McCulloh, D.Phil., President
SUBJ: Announcement of Successful CHIPS Act (Phase 1) “Tech Hub” Designation  
DATE: October 25, 2023

Earlier this year, I identified a competitive opportunity that we would pursue, created as part of the CHIPS and Science Act of 2022. The Act authorized the awarding of $500 million in grants by the Department of Commerce’s Economic Development Administration (EDA) through a multi-phase competitive application process. Gonzaga University, in partnership with regional manufacturer Advanced Thermoplastic Composites (ATC), led the creation of a powerful consortium of private industry, education, Tribal nations, government agencies, labor unions and non-profit organizations in applying for the designation, and large-scale grant funding, to stimulate regional economic development of advanced aerospace parts manufacturing.

This past Monday, President Biden and Commerce Secretary Raimondo announced the designation of 31 communities across the country as Regional Innovation and Technology Hubs (“Tech Hubs”). Out of 370+ applications representing 49 states and four territories, the Gonzaga-led consortium was one of the 31 so named, and the only application awarded this designation in Washington State. The designation as a Tech Hub not only recognizes the numerous regional aerospace companies already involved in the manufacture of aircraft and spacecraft components; it also recognizes the potential for large-scale production of advanced carbon fiber composite components for next-generation aerospace needs, here in Eastern Washington and North Idaho. And a major part of that recognition is vested in the belief that such production is dependent upon a flourishing population of well-educated college and university students.

Advanced thermoplastic design, development and production at the scale contemplated by this application would create opportunities not only for job creation, but significant educational opportunities in every segment from K-12 through the graduate level. In addition, this industry would require people well prepared in disciplines from engineering, computer science, management, education, law, and other related fields. Our hope would be to create additional opportunities for research, internships, design projects and employment opportunities for Gonzaga students and faculty. It is hoped that the recently announced Institute for Informatics and Applied Technology will play a role in assisting with the development of programs and opportunities that would be created by this Tech Hub designation, as well.

It is important to acknowledge the support Gonzaga University has received from many entities and individuals, and in particular Senators Cantwell and Murray, as well as Congresswoman McMorris Rodgers, as well as many local and regional partners. I want to thank John Sklut, Liaison for External and Government Affairs, for his diligent work at identifying consortium members and working with our colleagues in the Office of Sponsored Research to ensure that the Phase 1 proposal was thorough and completed in advance of the deadline. As significant as this designation is, awarding of major Tech Hub funding (e.g., $40 to $70 million) is contingent upon a successful Phase 2 grant, which we will diligently pursue.

As we enter Phase 2, we do so knowing such a transformational opportunity for the Inland Northwest and for Gonzaga will come only after a lot of planning, hard work, and significant competition from many other worthy proposals. As we do so, we may be buoyed by the knowledge that, however Phase 2 turns out, our efforts have identified significant growth opportunities for this region and have positioned Gonzaga as a facilitative and collaborative leading institution that brings business, government agencies, tribal nations, other educational institutions, and labor unions together toward a common cause. Such collaborative work for the betterment of our communities is very much a hallmark of our Jesuit mission and Strategic Plan. I’m excited for our next steps.