December 11, 2024 /SemiMedia/ — The US Department of Commerce has announced three preliminary memorandums (PMTs) under the CHIPS and Science Act, proposing $33 million to Coherent, $16 million to SkyWater Technology Foundry, and $50 million to X-Fab in direct funding.

  • Coherent: The funds will expand its Sherman, Texas plant, creating the world’s first 150mm indium phosphide (InP) production line to support AI, consumer electronics, and medical applications. The investment is expected to generate 70 jobs.
  • SkyWater: Funding will modernize its Bloomington, Minnesota facility, increasing 90nm and 130nm wafer production by approximately 30% and enhancing its ability to support the Department of Defense. The project is estimated to add 70 jobs.
  • X-Fab: The investment will upgrade and expand its Lubbock, Texas silicon carbide (SiC) foundry, the only high-volume SiC foundry in the US, bolstering supply chain resilience and creating 150 jobs.

Commerce Secretary Gina Raimondo emphasized that these investments aim to strengthen domestic semiconductor production and secure supply chains.

All three companies also plan to apply for advanced manufacturing tax credits, covering 25% of eligible capital expenses. So far, $19 billion of the anticipated $36 billion in CHIPS Act incentives have been allocated, with projections of creating over 125,000 jobs and spurring $450 billion in private investment.