Governor Newsom made the announcement in a video and news release overnight.
"California has long been a leader in global technology and future thinking innovation," Newsom said in a 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."
The facility is being funded by the Biden-Harris administration's CHIPS and Science Act and will be based in Sunnyvale.
"We are thrilled that the Department of Commerce and Natcast chose to locate this critically important facility in Sunnyvale, the heart of Silicon Valley, alongside the world's largest concentration of semiconductor businesses, talent, intellectual property, and investment activity," said Dee Dee Myers, senior economic advisor to Newsom.
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Also excited is Sunnyvale Mayor Larry Klein.
"I'm just overjoyed to see that Sunnyvale was the chosen location," he said.
Klein said the city is ready to welcome new talent and has already worked on long term planning to add office, housing and retail space.
"So that there's additional places for our partners to grow, but also housing for people to live here, for the employees and, and all the, all the scientists that'll be part of this project have a place in Sunnyvale."
Many in the academic community are also excited by the possibilities.
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"There will be an internship. There will be places where there will be some projects. There will be some grants. All of this one will open the door for strengthening the relationship between the academic world and the government and the industry itself," said Ahmed Banafa, a professor at San Jose State University.
Semiconductors are the basis of most electronics, including your computers and cell phones.
The goal of this center is to really ramp up America's ability to design, develop and manufacture semiconductors.
That's been a concern because right now, the U.S. relies on semiconductors made overseas.
As for where the location of the Sunnyvale center will be, Klein said that right now there are general ideas, but until a location is finalized, there's no announcement yet.