The Biden-Harris Administration has announced preliminary terms with Coherent, SkyWater Technology Foundry Inc., and X-Fab under the CHIPS and Science Act. The U.S. Department of Commerce plans to provide up to $33 million in funding for Coherent, $16 million for SkyWater, and $50 million for X-Fab. These investments aim to enhance semiconductor manufacturing capacity in the United States.
The investment in Coherent is intended to support expansion and modernization at its facility in Sherman, Texas, potentially creating about 70 jobs. SkyWater's funding will aid the modernization of its Bloomington, Minnesota facility and could create approximately 70 jobs. Meanwhile, X-Fab's project in Lubbock, Texas aims to modernize and expand its silicon carbide fab, potentially creating up to 150 jobs.
U.S. Secretary of Commerce Gina Raimondo stated that these investments are "making targeted investments to meet market demands for technology critical to our national and economic security." National Economic Advisor Lael Brainard emphasized that these announcements highlight America's innovative edge rooted in communities like Sherman and Lubbock, Texas and Bloomington, Minnesota.
Dr. Giovanni Barbarossa from Coherent expressed enthusiasm for accelerating their industry leadership through this investment. Thomas Sonderman from SkyWater acknowledged the importance of the proposed CHIPS funding for expanding onshore capacity. Rico Tillner from X-FAB Texas highlighted their role in supporting electric mobility and renewable energy sources.
The companies plan to utilize the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which provides a 25% credit on qualified capital expenditures.
This announcement follows a comprehensive process by the Department of Commerce after reviewing applications for potential CHIPS incentives awards. The CHIPS program has allocated over $19 billion out of $36 billion proposed incentives funding so far across 20 states, expecting to create over 125,000 jobs nationwide.
