The Biden-Harris Administration has announced preliminary agreements with Corning and Powerex to bolster U.S. supply chain resilience under the CHIPS and Science Act. The U.S. Department of Commerce has signed two preliminary memoranda of terms (PMT) proposing up to $32 million in funding for Corning and up to $3 million for Powerex.

These investments aim to enhance domestic production capacity crucial for semiconductor manufacturing in the United States. Corning's proposed investment will support its manufacturing facility expansion in Canton, New York, potentially creating 130 manufacturing jobs and over 175 construction jobs. Meanwhile, Powerex's proposed funding will modernize its production facility in Youngwood, Pennsylvania, expected to generate over 55 manufacturing jobs and up to 20 construction jobs.

U.S. Secretary of Commerce Gina Raimondo stated that these investments are part of a broader effort driven by the bipartisan CHIPS and Science Act: “Because of the Biden-Harris Administration’s bipartisan CHIPS and Science Act, we are making targeted proposed investments across the semiconductor supply chain that are driving the revitalization of this industry in America.”

Corning Incorporated Chairman and CEO Wendell Weeks expressed pride in their role within the semiconductor industry: “This proposed investment and the continued commitment in Canton will enable us to establish the next-generation manufacturing capabilities needed to produce vital materials for lithography tools that will develop the world’s most complex microchips.”

Powerex CEO Joseph Wolf highlighted how this funding could help small companies like theirs: “With this proposed funding, we’ll enhance our production capabilities and create new jobs... This proposed investment allows us to meet rising demand with U.S.-made products while building a stronger future for our team and community.”

Both companies plan to utilize the Department of Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), offering a 25% credit on qualified capital expenditures.

The Department of Commerce may offer applicants a PMT after completing a merit review process. These agreements outline potential award terms subject to due diligence, negotiation, and milestone achievements.

CHIPS for America has allocated over $36 billion across various states with plans for further investments expected to create more than 125,000 jobs. This initiative is part of President Biden's economic strategy focusing on domestic investment, job creation, and community revitalization.