U.S. Department of Commerce Announces CHIPS Incentives Awards with Corning, Edwards Vacuum, and Infinera to Increase Domestic Production Capacity of Chips and Equipment Critical for U.S. Technological Leadership
Today, the U.S. Department of Commerce announced it finalized three separate awards under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The Department awarded Corning up to $32 million in direct funding, it awarded Edwards Vacuum up to $18 million in direct funding, and it awarded Infinera up to $93 million in direct funding. The awards come after the previously signed preliminary memoranda of terms, announced on November 8, 2024, October 10, 2024, and October 17, 2024, respectively, and the completion of the Department’s due diligence. The Department will disburse the funds based on the companies’ completion of project milestones.
In addition, the Department amended the previously announced award to provide a supplemental award of up to $75 million in direct funding to GlobalFoundries.
U.S. Department of Commerce Announces $1.4 Billion in Final Awards to Support the Next Generation of U.S. Semiconductor Advanced Packaging
On January 16, the U.S. Department of Commerce has announced that CHIPS National Advanced Packaging Manufacturing Program (NAPMP) has finalized $1.4 billion in award funding to bolster U.S. leadership in advanced packaging and enable new technologies to be validated and transitioned at scale to U.S. manufacturing. These awards will help establish a self-sustaining, high-volume, domestic, advanced packaging industry where advanced node chips are both manufactured and packaged in the United States.
These awards include:
- A total of $300 million under the CHIPS NAPMP’s first Notice of Funding Opportunity (NOFO) for advanced substrates and material research to Absolics Inc., Applied Materials Inc., and Arizona State University. This follows the previously announced intent to enter negotiations on November 21, 2024.
- $1.1 billion to Natcast to operate the advanced packaging capabilities of the CHIPS for America NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility (PPF). This follows the previously announced CHIPS R&D Facilities Model on July 12, 2024, and planned site selection for the PPF on January 6, 2025.
U.S. Department of Commerce Finalizes Long-Term Partnership with Natcast to Operate the National Semiconductor Technology Center
On January 16, the U.S. Department of Commerce announced the National Institute of Standards and Technology (NIST) has awarded Natcast up to $6.3 billion to operate the National Semiconductor Technology Center (NSTC) under a long-term agreement with NIST. Through this partnership, Natcast will continue to build the NSTC as an enduring institution that will extend U.S. leadership in semiconductor technology, reduce the time and cost to prototype, and build and sustain a semiconductor workforce ecosystem, consistent with the vision laid out in the CHIPS and Science Act. This award follows the previously announced intent to invest over $5 billion in the NSTC.
U.S. Department of Commerce Announces Preliminary Terms with Analog Devices, Coherent Corp., Intelligent Epitaxy Technology, Inc. and Sumika Semiconductor Materials Texas Inc., to Strengthen U.S. Semiconductor Leadership
On January 16, the U.S. Department of Commerce announced the signing of four separate non-binding preliminary memoranda of terms (PMT) under the CHIPS and Science Act to provide up to $105 million in proposed direct funding to Analog Devices, Inc. (“ADI”), up to $79 million in proposed direct funding to Coherent, up to $10.3 million in proposed direct funding to Intelligent Epitaxy Technology, Inc. (“IntelliEPI), and up to $52.1 million in proposed direct funding to Sumika Semiconductor Materials Texas Inc., (“Sumika”). The proposed investment in ADI would support the expansion and modernization of two advanced research & development (R&D) and Radio Frequency (RF) Microwave (MW) systems manufacturing facilities in Chelmsford, Massachusetts, as well as expand and modernize two semiconductor fabrication facilities in Beaverton, Oregon and Camas, Washington which could create up to an estimated 500 manufacturing and engineering jobs across all sites with proposed CHIPS funding. The proposed investment in IntelliEPI would support the expansion and modernization of it’s existing manufacturing facility in Allen, Texas to increase production of epitaxial wafers and could create 40 manufacturing jobs and 16 construction jobs. The proposed investment in Coherent would support the expansion of it’s existing manufacturing facility in Easton, Pennsylvania and would create approximately 360 jobs. The proposed investment in Sumika would support the construction of a greenfield factory in Baytown, Texas to manufacture high-purity chemicals and could create over 290 jobs.
U.S. Department of Commerce Announces Preliminary Terms with MACOM to Help Strengthen Supply Chain Resilience for U.S. Defense and Telecommunications Industries
On January 14, the U.S. Department of Commerce signed a non-binding preliminary memorandum of terms (PMT) with MACOM Technology Solutions Inc. (“MACOM”) to provide up to $70 million in proposed direct funding under the CHIPS and Science Act. The proposed CHIPS funding would support the expansion and modernization of MACOM’s facilities in Lowell, Massachusetts, and Durham, North Carolina, and would create up to 350 manufacturing jobs and nearly 60 construction jobs across both states.
U.S. Department of Commerce Announces CHIPS Incentives Award with HP to Support Domestic Manufacturing of Next-Generation Technologies and “Lab-to-Fab” Ecosystem
On January 13, the U.S. Department of Commerce awarded HPI Federal LLC up to $53 million in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. This award will support the expansion and modernization of the existing facility of HP Inc. (“HP”) in Corvallis, Oregon, which is part of the company’s “lab-to-fab” ecosystem in the region that spans from research and development (R&D) activities to commercial manufacturing operations, and serves as one of three R&D Centers for Excellence within the company’s global footprint. The award comes after the previously signed preliminary memorandum of terms, announced on August 27, 2024, and the completion of the Department’s due diligence. The Department will disburse the funds based on HP’s completion of project milestones.
CHIPS for America in the News
Triad Business Journal: CHIPS Act funds to support chipmaker's RTP expansion, new jobs
[Lauren Ohnesorge, 1/14/25]
Another company with Triangle operations is in line for millions in CHIPS Act funding.
This time it’s semiconductor firm MACOM Technology Solutions (Nasdaq: MTSI), which has reached a “non-binding” agreement with the U.S. Department of Commerce that would provide the Massachusetts-based company up to $70 million in proposed direct funding.
The CHIPS Act of 2022 earmarked billions of taxpayer dollars for companies such as Samsung, Intel (Nasdaq: INTC), Micron (Nasdaq: MU), Global Foundries (Nasdaq: GFS) and, in the Triangle, Durham-based Wolfspeed (NYSE: WOLF).
This time the money would support the expansion and modernization of Macom’s facilities in both Lowell, Massachusetts and Research Triangle Park, creating up to 350 manufacturing jobs and nearly 60 construction jobs across both states.
Federal officials did not answer questions about the impact specific to RTP, where Macom bought out Wolfspeed's radio-frequency business in 2023, giving the company a Triangle presence.
The Oregonian: HP finalizes $53 million in CHIPS Act money for Oregon expansion
[Mike Rogoway, 1/13/24]
The Biden administration said Monday it has finalized a $53 million award for HP Inc. to expand research and manufacturing in Corvallis.
The Commerce Department announced the subsidy last summer but other incentives have been downsized, renegotiated or dropped altogether as some chipmakers pulled back on their expansion plans amid declining sales. The Biden administration has been finalizing agreements at a rapid pace over the past few weeks, ahead of President-elect Donald Trump taking office.
HP says the money will help fund innovation in microfluidics and micromechanics. The company is adapting technology originally developed for inkjet printing to precisely target medicines and enable drug discovery.
HP says the money will fund additional research in Corvallis and enable the company to rapidly move fruitful projects from the prototype phase into on-site manufacturing. HP expects the expansion will create 150 temporary construction jobs and 100 long-term engineering and factory jobs.
Portland Business Journal: HP finalizes $53M CHIPS Act award for Corvallis facilities
[Pete Danko, 1/13/25]
The Biden administration and HP Inc. (NYSE: HPQ) finalized a $53 million CHIPS Act award that will support an expected investment of nearly a half billion dollars at the company's Corvallis campus.
The U.S. Commerce Department announcement on Monday, a week before President Joe Biden leaves office, marks the second completed federal CHIPS award for Oregon projects. Intel is set to get up to nearly $7.9 billion, including $1.9 billion for its Washington County R&D hub.
But the $52 billion federal CHIPS Act has also come with a major disappointment for Oregon, the failure to land one of three National Semiconductor Technology Centers. That could have brought hundreds of millions of dollars in additional federal money to the state.
A preliminary $50 million award for HP was disclosed in August. Now the government is bound to provide the funding if the company hits agreed-upon milestones. The final award includes up to $3 million in workforce development funding.
"This significant development will accelerate our work and innovation in micro-electro-mechanical systems (MEMS) technology, which directly benefits the U.S. semiconductor and life sciences industries, as well as strengthens global competitiveness,” Enrique Lores, HP's president and CEO, said in a written statement.
Lehigh Valley News: Feds announce $79 million CHIPS Act deal with Palmer Township tech company
[Tom Shortell, 1/16/24]
PALMER TWP., Pa. — Another Lehigh Valley tech company is looking to expand after reaching a preliminary deal worth up to $79 million with the federal government to boost domestic production of semiconductor wafers.
The U.S. Department of Commerce announced a non-binding agreement with Coherent Corp. on Thursday morning that would create 320 new manufacturing jobs at its Newlins Mill Road facility. The planned expansion of the facility would create 40 construction jobs as well, department officials said in a news release.
The investment is intended to increase production capacity of silicon carbide substrates, specially engineered crystals. The crystal's properties allow it to withstand high heat and voltage, making them ideal for electronic vehicles and aerospace applications, according to Coherent's website.
Rob Beard, Coherent's chief legal and global affairs officer, said in a prepared statement that the Butler County-based company was honored to partner with the federal government.
Arizona Republic: ASU-related projects nab $1.2 billion for new research tied to semiconductor packaging
[Russ Wiles, 1/16/24]
Arizona State University-affiliated research programs and laboratories will receive $1.2 billion in new funding for semiconductor packaging, winning two of four new national awards announced by the U.S. Commerce Department on Wednesday.
The biggest prize, worth $1.1 billion, will go to the Natcast Advanced Packaging Facility to be built in the ASU Research Park in southeast Tempe. This laboratory will be part of an effort to bridge the gap between research and commercial production and will involve testing new materials and devices used in specific packaging segments.
Natcast is a nonprofit entity tied to the Commerce Department and will own the new facility, which was announced on Jan. 6 but without a definitive funding amount. The laboratory is expected to draw researchers from around the nation, from startups to large manufacturers.
Packaging is the process of protecting semiconductors and connecting them to the myriad of electronic devices they power, in intricate ways that ensure performance and enhance speed while minimizing power use — all on an increasingly diminutive scale.
WFMZ: Infinera finalizes federal cash for new Lehigh Valley facility
[Amy Unger, 1/17/25]
BETHLEHEM, Pa.- The U.S. Department of Commerce has signed off on a hefty cash infusion for a global semiconductor manufacturer that has plans to expand in the Lehigh Valley.
The department announced Friday it had finalized a $93 million award to Infinera as part of the CHIPS and Science Act. The funding was first announced in October under a non-binding preliminary memorandum of terms (PMT).
Now the department is finalizing the award, following the completion of its "due diligence." According to a news release, the money will be disbursed based on the completion of project milestones.
The funding will support Infinera's construction of a new fab in San Jose, California, and a new advanced test and packaging facility in Bethlehem.
According to the news release, the new facilities will create 500 manufacturing jobs and 1,200 construction jobs, but it's not clear how many of those jobs would be in the Lehigh Valley.
Infinera is a semiconductor and telecommunications equipment manufacturer that has operated its U.S. fabrication and advanced test and packaging facilities for over 20 years. The company is headquartered in San Jose but has research and development technology centers around the world.
About CHIPS for America
CHIPS for America investments stimulate private sector investment, help create good-paying jobs, bolster domestic manufacturing, and support communities across the United States. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development (R&D) Office, responsible for R&D programs. Both offices sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit https://www.chips.gov to learn more.
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