The Department of Commerce on Thursday announced $246.4 million in proposed CHIPS and Science Act funding to four companies, according to a National Institute of Standards and Technology press release.
The proposals are part of the Biden administration's huge push to distribute most of the $39 billion bucket for U.S. semiconductor manufacturing projects before President-elect Donald Trump enters office Jan. 20.
The first awardee, Analog Devices, will receive $105 million to expand and modernize three facilities, creating an estimated 500 manufacturing and engineering jobs.
The investment will aid advanced research and development and radio frequency microwave manufacturing in Chelmsford, Massachusetts. Analog Devices will also expand its front-end mature node semiconductor fabrication in Beaverton, Oregon, and Camas, Washington, expecting to see a 70% capacity increase at both the facilities, which will onshore nodes manufacturing and reduce environmental impacts.
The Commerce Department proposed an additional $79 million to Coherent for a project in Easton, Pennsylvania, creating 320 manufacturing jobs. The funds will expand production of silicon carbide substrates, SiC epitaxial wafer manufacturing capacity, back-end of line processing, electronic performance and reliability testing capabilities, according to the release.
SiC substrates are a key material with end uses in energy and military applications. The CHIPS funding could increase Coherent’s substrate production capacity by over 750,000 substrates per year and more than double the output of epitaxial wafers annually.
In December, Coherent was also awarded roughly $33 million in CHIPS funding for modernizing and expanding its manufacturing cleanroom in its facility in Sherman, Texas. The company will add advanced wafer fabrication equipment to produce an 150-millimeter indium phosphide manufacturing line, used in applications such as datacom and telecom transceivers.
The third company awarded was Intelligent Epitaxy Technology for $10.3 million. The CHIPS funds will be used to upgrade IntelliEPI’s epitaxial wafer production in Allen, Texas, creating 40 manufacturing jobs.
Lastly, Sumika Semiconductor Materials Texas is set to receive $52.1 million in CHIPS funding for a new greenfield facility in Baytown, Texas. The plant will produce ultra-high purity isopropyl alcohol, a key chemical in semiconductor manufacturing, which currently is mostly made in East Asia, according to the release.
Sumika, a subsidiary of the Japan-based Sumitomo Chemical Co., will work with Houston area colleges to train students for roles in high purity chemical processing. The Texas project will establish 43 manufacturing and 250 construction jobs.
