The Biden-Harris Administration announced a preliminary memorandum of terms (PMT) with Entegris to onshore supply chain materials for advanced chip production. The Department of Commerce and Entegris, a supplier of advanced materials for chipmakers, reached an agreement involving up to $75 million in proposed federal incentives under the CHIPS and Science Act.
President Biden signed the bipartisan CHIPS and Science Act to enhance semiconductor manufacturing in the United States, aiming to create jobs and strengthen the domestic supply chain. The proposed investment is expected to generate nearly 600 direct manufacturing jobs over several years and approximately 500 construction jobs by 2030.
"As the Biden-Harris Administration is revitalizing America’s semiconductor manufacturing industry, we’re not just bringing leading-edge chip technology and fabs to the United States, we’re also bolstering the suppliers that make leading-edge manufacturing possible," said U.S. Secretary of Commerce Gina Raimondo. "Thanks to President Biden’s leadership, we are working to onshore and expand critical pieces of the semiconductor supply chain, and create quality, good-paying jobs for Americans in the process."
White House Deputy Chief of Staff Natalie Quillian stated, "President Biden continues to invest in America by delivering good-paying jobs, strengthening our supply chains, and rebuilding our economy from the middle-out and bottom-up. Today’s announcement would create over 1,100 new jobs in Colorado that will help power America’s semiconductor industry and drive American competitiveness."
Entegris is known for its advanced materials and process solutions for high-technology industries. The company invented Front Opening Unified Pods (FOUPs), specialized containers securing semiconductor wafers during manufacturing. Major customers include Intel, TSMC, Micron, and GlobalFoundries.
"We are excited to be working with the Department of Commerce to help achieve the goal of strengthening the U.S. semiconductor industry infrastructure," said Entegris President and CEO Bertrand Loy. "This proposed federal support would help further position us to respond quickly to meet the needs of our customers while also re-establishing Colorado as a major technology hub."
The CHIPS investment supports Entegris' construction of a state-of-the-art manufacturing center in Colorado Springs. The project includes multiple phases: producing FOUPs currently made abroad, liquid filter membranes, advanced liquid filters, purifiers, and fluid handling solutions. Entegris plans further R&D expansion in the U.S. by decade's end.
Entegris collaborates with Microchip Technology Inc., Pikes Peak State College, Pikes Peak Business Education Alliance, school districts, universities on workforce development creating a self-sustaining ecosystem in Colorado Springs. The project aims to recruit 50% of its workforce from Veteran families through partnerships with Hiring Our Heroes among others.
Entegris emphasizes environmental sustainability aligning its facility operations with its Corporate Social Responsibility framework targeting a 42% reduction in greenhouse gas emissions by 2030 from a 2020 baseline.
The company plans to claim up to 25% Investment Tax Credit on qualified capital expenditures from the Department of Treasury. After satisfactory merit review completion of full applications PMTs outline key terms for potential CHIPS incentives awards subject to due diligence milestones achievement.
CHIPS for America has announced up to $29.5 billion across eleven PMTs revitalizing America's semiconductor industry expecting significant public-private investments totaling over $300 billion by decade's end.
Earlier this year Secretary Raimondo projected America producing 20% world-leading chips by decade's end reducing vulnerability supply chain disruptions tripling domestic capacity since CHIPS Act enactment projecting largest global increase at 204%.
With these announcements four out five leading-edge companies expand operations on U.S shores compared globally where no other economy hosts more than two such companies domestically producing leading-edge chips.
Department received over 665 statements interest more than 167 pre-applications along with additional small supplier concept plans continuing rigorous evaluations determining projects advancing national economic security attracting private capital delivering economic benefits nationwide announcing eleventh PMT under CHIPS Act anticipating further announcements throughout year.
CHIPS for America part President Biden's economic plan investing stimulating private sector creating good-paying jobs revitalizing communities including Program Office responsible incentives Research Development Office within National Institute Standards Technology promoting innovation industrial competitiveness enhancing economic security improving quality life administering program leveraging strong industry relationships understanding ecosystem trusted reputation.
