The U.S. Department of Commerce has announced a preliminary memorandum of terms with Rogue Valley Microdevices (RVM) to support the construction of a new foundry facility in Palm Bay, Florida. The proposed investment, valued at up to $6.7 million under the CHIPS and Science Act, aims to nearly triple RVM’s production capacity.
RVM is one of the few U.S.-based pure play microelectromechanical systems (MEMS) foundries specializing in high-mix, low-volume wafer services crucial for the defense industrial base and biomedical industry. MEMS devices integrate electrical and mechanical components on a microscale and are vital for various technological advancements.
"The proposed investment in RVM is another example of how the Biden-Harris Administration is making targeted investments across the semiconductor supply chain to reignite U.S. leadership in semiconductor manufacturing," said U.S. Secretary of Commerce Gina Raimondo. "Because of President Biden’s CHIPS and Science Act, we are working to secure U.S.-based companies a stable, domestic supply of MEMS technology when demand is increasing across the globe."
National Economic Advisor Lael Brainard stated, "This investment in Rogue Valley Microdevices is another demonstration of President Biden’s commitment to America’s semiconductor comeback – benefitting businesses of all sizes, including women and minority-owned businesses, and creating jobs in communities throughout the country."
Laurie E. Locascio, Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director, added, "As one of the only U.S.-based MEMS foundries, RVM is positioned to support the U.S. semiconductor ecosystem with its 300mm MEMS foundry services."
Jessica Gomez, Founder and CEO of Rogue Valley Microdevices, commented on their plans: "We plan to use this capital infusion to increase production of the miniature, intelligent sensors that are critical to markets for which a robust supply chain is essential." She noted that they would expand from their west coast foundry in Oregon to their new location on Florida's Space Coast.
The proposed funding will support facility construction, including clean room renovation and equipment installation. The first wafers produced at Palm Bay are expected to ship by early 2025 with full completion anticipated by mid-2025. Additionally, RVM plans to establish on-site childcare facilities offering STEM-based education.
This investment marks the first CHIPS funding for a women- and minority-owned business. It underscores the significant role smaller businesses play within the semiconductor ecosystem.
The Department may offer applicants a PMT on a non-binding basis after satisfactory merit review completion. This PMT outlines key terms for potential CHIPS incentives awards subject to due diligence and negotiation.
CHIPS for America has announced up to $29.5 billion in proposed funding across eleven preliminary memoranda aiming to revitalize America's semiconductor industry. These investments have already spurred over $300 billion in public and private investments through this decade.
Secretary Raimondo previously indicated that by decade's end, America aims to produce 20% of the world's leading-edge chips. According to a Semiconductor Industry Association report, domestic semiconductor manufacturing capacity could triple from 2022 levels by 2032.
With four out of five leading-edge companies expanding operations domestically under these initiatives, no other economy has more than two such companies producing advanced chips within its borders.
The Department has received over 670 statements of interest alongside numerous pre-applications for NOFO 1 and small supplier concept plans for NOFO 2 as part of ongoing evaluations aimed at advancing national security interests while attracting private capital investments.
For further information about CHIPS for America initiatives or additional media inquiries regarding Rogue Valley Microdevices:
Maria Doyle
[email protected]
781-964-3536
Maria Vetrano
[email protected]
857-212-6550
