KLA-Tencor Corporation (NASDAQ: KLAC) has announced plans to establish a research-and-development (R&D) center in Ann Arbor, Michigan. The development is expected to include a total capital investment of more than $70 million and create up to 500 new high-tech jobs in the region over the next five years.

“Among the reasons for building a major R&D hub in the Ann Arbor and Detroit metropolitan area are the region’s attractive talent pool, relative low cost of living and proximity to Detroit Metropolitan Airport,” said Bobby Bell, chief strategy officer. “Our plan is to develop innovative solutions that will have an impact across a broad spectrum of semiconductor and electronics applications, including data storage, cloud computing, machine learning and automotive.”

“We’re confident that we can continue to create and deliver impactful technologies that ultimately help enrich the human experience. Our expansion into Michigan will help us realize our vision,” said Rick Wallace, chief executive officer. “This location also allows the company to strengthen our long-term partnership with the University of Michigan, including engaging in collaborative research.”

Semiconductor manufacturing to support the growing automotive electronics industry requires improved device reliability and defect control. In addition, the expanding applications of artificial intelligence (AI) and machine learning are driving strong demand for compute power and memory. Semiconductor manufacturers serving these diverse needs are turning to KLA-Tencor’s advanced process control solutions and services to help address their complex challenges.

KLA-Tencor’s decision to build a new location is founded upon a need to serve growing demand from its global customer base, while expanding the company’s footprint in North America.

The project was conceived in partnership with Michigan Economic Development Corporation and approved by the Michigan Strategic Fund.