NEOCITY, Fla. — The Department of Defense has awarded Osceola County and partners a five-year contract for NeoCity to produce next-generation microchips for the U.S. military.

Central Florida’s NeoCity, a 500-acre manufacturing research and development center, has been working toward becoming a major player in the semiconductor industry for years now.

Osceola’s assistant county manager Amanda Clavijo said the defense department wants to bring this technology closer to home.

“Right now, about 97% of advanced packaging happens overseas and trying to bring that market for national security purposes to the United States is a top priority. And NeoCity is the perfect place with the facility we have and the partnerships we have to move that forward,” said Calavijo.

What You Need To Know

  • Osceola County and its partners have been awarded a five-year Department of Defense contract for NeoCity

  • The current contract is worth $120 million, and options could bring the total up to $289 million

  • Osceola County Board of County Commissioners will use funds for two workforce initiatives that will grow production, for research, and to build a labor force for semiconductor manufacturing

The county received an initial funding allocation of $3.65 million to help with workforce development, and the current contract is valued at $120 million. It also includes options for an additional $169 million, potentially resulting in a total award of $289 million.

Additional funds totaling $67.5 million will also go to growing the sector.

That money comes from the U.S. Economic Development Administration’s Build Back Better Regional Challenge program.

According to Clavijo, an additional $17.5 million has also been promised by Gov. Ron DeSantis and the state to further chip technology and research that will benefit everyone.

“NeoCity means job growth for the area. It will pay the high-paying jobs for the students and residents of Osceola County,” said Clavijo.

A coalition led by the Osceola County Board of County Commissioners will use all funds for two workforce initiatives that will grow production, research, and build a labor force for semiconductor manufacturing at the NeoCity facility.

According to the Semiconductor Industry Association, Florida has a solid chip industry, with 110 semiconductor establishments in the state ranking Florida as the third-highest in the nation, with more than 13,000 jobs.

Jim Young, CEO of SawStreet in Orlando, believes the investment in NeoCity will spread far and wide into Central Florida.

“We have been watching what has been going on in NeoCity for a couple of years, and that recent announcement is going to be really beneficial for companies like SawStreet,” said Young.

SawStreet is a 29-employee quick turn semiconductor backend service that provides grinding, dicing and pick & place services for customers worldwide.

“Semiconductor chips are made in wafer form. So, we are responsible for simulating that production and sending them to customers,” said Young.

As an engineer from Silicon Valley, Young started SawStreet in 2008 and has grown his business into a $3 million a year company and believes moving this technology and training to NeoCity is essential for the country.

“Take a look where semiconductors are at in this world. It’s critical to have that infrastructure here in the states. We see what supply chains do when you can’t get your product quick enough,” he said.