The US Department of Commerce has reached significant agreements to support semiconductor manufacturing under the CHIPS Act. These preliminary memoranda of terms will allocate over $246 million in funding to four key organizations: Analog Devices, Coherent, Intelligent Epitaxy Technology, and Sumika Semiconductor Materials Texas. This effort aims to boost the expansion and modernization of semiconductor production facilities across the country.
Funding Breakdown for Key Companies
The funding packages for each organization include:
- Analog Devices: $105 million
- Coherent: $79 million
- Intelligent Epitaxy Technology: $10.3 million
- Sumika Semiconductor Materials Texas: $52.1 million
This substantial investment is part of a broader initiative to revitalize semiconductor manufacturing within the United States.
Expansion Plans for Analog Devices
Analog Devices (ADI) is set to use its portion of the funding to expand and modernize multiple facilities. Specifically, the company will upgrade two manufacturing sites in Chelmsford, Massachusetts, which house an R&D center and production for radio frequency and microwave systems. Additionally, ADI will work to enhance chip fabs in Beaverton, Oregon, and Camas, Washington. This expansion could lead to the creation of 500 new manufacturing and engineering jobs across these locations.
Coherent’s Facility Expansion in Pennsylvania
Coherent, a major player in semiconductor manufacturing, plans to expand its facility in Easton, Pennsylvania. This upgrade is expected to generate approximately 360 new jobs. The company’s investment will strengthen the region’s semiconductor manufacturing capabilities and contribute to the broader growth of the US semiconductor ecosystem.
Intelligent Epitaxy Technology’s Expansion in Texas
Intelligent Epitaxy Technology, based in Allen, Texas, will use the allocated funding to modernize and expand its existing manufacturing facility. This move is part of a larger effort to enhance domestic chip production capacity, further contributing to the nation’s semiconductor growth.
Sumika Semiconductor Materials Texas to Build Greenfield Factory
Sumika Semiconductor Materials Texas will utilize its share of the CHIPS Act funding to build a new greenfield factory in Baytown, Texas. The facility will manufacture high-purity chemicals for the semiconductor industry. The new plant is expected to create more than 290 jobs, bolstering the region’s manufacturing and technology sector.
The CHIPS National Advanced Packaging Manufacturing Program (NAPMP)
In addition to these funding agreements, the Department of Commerce announced a $1.4 billion investment into the CHIPS National Advanced Packaging Manufacturing Program (NAPMP). This program aims to advance packaging technology in the US semiconductor industry.
The funding is split as follows:
- $300 million for Absolics, Applied Materials, and Arizona State University to support research in advanced substrates and materials.
- $1.1 billion for Natcast to manage the advanced packaging capabilities of the CHIPS for America NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility (PPF).
These investments are designed to strengthen the US semiconductor ecosystem, focusing on improving packaging technologies, which are vital for the continued success of semiconductor production and innovation.
US Secretary of Commerce Gina Raimondo’s Statement
US Secretary of Commerce, Gina Raimondo, highlighted the significance of these investments: “These CHIPS for America investments and CHIPS research and development flagship facilities will strengthen our end-to-end semiconductor ecosystem and help close the gap between invention and commercialization to ensure the United States is a global leader in semiconductor innovation and manufacturing.”
Potential Impact of Upcoming Political Changes
With President-elect Donald Trump set to take office soon, there is some uncertainty surrounding the future of the CHIPS Act. Throughout the campaign, Trump criticized the initiative, suggesting that tariffs on the semiconductor industry would have been a better approach than offering grants and loans. This upcoming political shift could potentially influence the direction of future funding for semiconductor companies in the US.
FAQ Section
1. What is the CHIPS Act?
The CHIPS Act is a federal initiative designed to encourage the growth and development of semiconductor manufacturing in the United States. The program provides funding to companies to expand and modernize manufacturing facilities.
2. Which companies are receiving funding under the latest CHIPS Act agreements?
The four companies receiving funding in this round are Analog Devices, Coherent, Intelligent Epitaxy Technology, and Sumika Semiconductor Materials Texas.
3. How many jobs will the CHIPS funding create?
The funding is expected to create over 1,800 jobs across various facilities in Massachusetts, Oregon, Washington, Pennsylvania, and Texas.
4. What is the CHIPS National Advanced Packaging Manufacturing Program (NAPMP)?
NAPMP is a program designed to support the development of advanced packaging technologies for semiconductors in the United States. It includes a significant investment to strengthen the nation’s capabilities in this critical area.
5. What are the political implications for the CHIPS Act under the new administration?
The future of the CHIPS Act may be affected by the upcoming administration under President-elect Donald Trump, who has expressed concerns over government funding for the semiconductor industry.
