The U.S. Department of Commerce has announced preliminary agreements with four companies under the CHIPS and Science Act, aiming to boost semiconductor technology capabilities across the United States. The department plans to provide up to $105 million in proposed funding to Analog Devices, Inc., $79 million to Coherent Corp., $10.3 million to Intelligent Epitaxy Technology, Inc., and $52.1 million to Sumika Semiconductor Materials Texas Inc.
Analog Devices intends to use the investment for expanding and modernizing its facilities in Chelmsford, Massachusetts; Beaverton, Oregon; and Camas, Washington. This could result in approximately 500 new manufacturing and engineering jobs across these locations. "ADI is at the forefront of innovation in the expansion of U.S. semiconductor manufacturing," said Vincent Roche, CEO and Chair at Analog Devices.
Intelligent Epitaxy Technology plans to expand its existing facility in Allen, Texas, potentially creating 40 manufacturing jobs and 16 construction jobs.
Coherent's investment will support an expansion project at its Easton, Pennsylvania facility that is expected to create around 360 jobs. Rob Beard from Coherent stated that this reflects a shared commitment with the Department of Commerce "to strengthening domestic manufacturing."
Sumika Semiconductor Materials Texas aims to build a new factory in Baytown, Texas for high-purity chemical production which could generate over 290 jobs.
U.S. Secretary of Commerce Gina Raimondo highlighted the significance of these investments: “Thanks to the bipartisan CHIPS and Science Act, we are making targeted investments up and down the semiconductor supply chain.”
Both ADI and Coherent plan on claiming a tax credit under the Advanced Manufacturing Investment Credit (CHIPS ITC) program.
The Department of Commerce outlines terms for potential awards through non-binding memoranda after reviewing applications thoroughly. These terms may change upon further due diligence before finalizing any awards.
CHIPS for America has so far allocated over $33 billion out of more than $36 billion earmarked for incentives funding across various states, projected to create over 125,000 jobs nationwide.
