The U.S. Department of Commerce has announced a preliminary memorandum of terms with MACOM Technology Solutions Inc. to provide up to $70 million in proposed funding under the CHIPS and Science Act. This investment aims to expand and modernize MACOM's facilities in Lowell, Massachusetts, and Durham, North Carolina. The initiative is expected to create up to 350 manufacturing jobs and nearly 60 construction jobs across both states.
U.S. Secretary of Commerce Gina Raimondo stated, "Today’s announcement with MACOM is another example of how CHIPS for America is making targeted and strategic proposed investments across the semiconductor industry." She emphasized that the bipartisan CHIPS and Science Act strengthens U.S. supply chain security and advances technological leadership.
MACOM's facilities are Category 1A Trusted Foundries with the U.S. Department of Defense (DoD) and produce semiconductors crucial for defense systems operating at high frequencies, including radar systems, as well as commercial telecommunications applications. The proposed projects will increase production of existing Gallium Nitride (GaN) and Gallium Arsenide (GaAs) semiconductors and introduce production of larger GaN wafers.
National Economic Advisory Lael Brainard commented on the significance of this development: “Today’s announcement showcases how the CHIPS and Science Act is enabling the United States to develop the most advanced technologies while protecting our national security."
MACOM offers training, professional development, internships, and tuition reimbursement to support employee career growth. The proposed funding would enable further expansion of these workforce development programs.
Additionally, MACOM plans to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit, which covers 25% of qualified capital expenditures.
The Department of Commerce may offer applicants a PMT after satisfactory completion of a merit review process. This outlines key terms for potential incentives awards but remains non-binding until due diligence processes are completed.
CHIPS for America has allocated over $33 billion in incentives funding so far, creating more than 125,000 jobs across 22 states. It forms part of President Biden's economic plan aimed at stimulating private sector investment and revitalizing communities.
