Newsom pours nearly $100M into California manufacturing comeback

Sacramento, California – Governor Gavin Newsom on Monday rolled out nearly $100 million in new tax credits aimed at accelerating California’s manufacturing sector — a cornerstone of the state’s economic strategy and a field his administration has positioned as essential to long-term growth. The awards, delivered through the California Competes Tax Credit program, will support nine companies expanding or relocating operations across the state, bringing thousands of new high-wage jobs with them.

In total, GO-Biz — the Governor’s Office of Business and Economic Development — awarded $99.9 million to businesses spanning aerospace, clean technology, wastewater treatment, and advanced microelectronics. The administration says the investments will generate an estimated 2,752 new jobs with an average annual salary of $139,000, along with more than $370 million in private capital.

“California’s global leadership in innovation and manufacturing continues to set us apart,” Newsom said. “Through programs like CalCompetes, we’re attracting companies and helping them grow successfully in our state, creating good-paying jobs and opportunities for Californians.”

While California is often defined by its tech sector, manufacturing remains one of its most powerful economic engines. The field produced more than $405 billion in output in 2024 and employs over 1.24 million workers statewide. It is also at the center of the administration’s “California Jobs First” initiative — Newsom’s broader plan to strengthen economic mobility, expand workforce training and create pathways into high-skill industries.

The companies receiving credits reflect that diversity. Atomic Machines will expand micro-electromechanical systems manufacturing across the East Bay. Bright Machines will pour $62.9 million into scaling its Fremont data-center infrastructure facility. Hadrian Automation will hire 650 workers as it grows its aerospace component operations in Torrance and Northern California. Other investments include vitamin and supplement manufacturing in Sonoma County, satellite production in Long Beach, and wastewater treatment equipment fabrication in Fresno.

The largest single jobs commitment comes from Color Image Apparel, a Beverly Hills–based clothing manufacturer planning to add 774 new positions as part of a headquarters expansion.

“These companies represent the next generation of California innovation,” said Dee Dee Myers, senior advisor to the governor and director of GO-Biz. “From advanced manufacturing to clean technology, these investments strengthen the industries that define our economy and accelerate inclusive, economic growth across the state.”

Since its creation, the California Competes program has awarded tax credits to more than 1,200 businesses, supporting nearly 160,000 full-time jobs and generating over $50 billion in private investment. The latest round underscores how aggressively the state is courting employers at a moment when national debates over regulation, taxes and business climate continue to place California under scrutiny.

But state officials say the numbers tell their own story: a growing population, record tourism spending, and leadership in everything from venture capital investment to agricultural production. Manufacturing, they argue, ties many of these strengths together — anchoring local economies while keeping the state on the cutting edge of innovation.

In announcing the new credits, Newsom framed California’s economy not just as stable but forward-leaning. “California is not only a national economic powerhouse — it is driving the future,” he said.

For the companies receiving credits, the work now moves from approvals to hiring and building. For the state, the effort reflects a larger wager: that California’s next era of economic leadership will be built not only in labs and tech campuses, but on factory floors across the state.