The Department of Commerce has awarded three companies up to $100 million in proposed direct funding to enhance the production of critical semiconductor manufacturing components.
The Commerce Department said Friday the proposed investments under the CHIPS and Science Act were awarded to Coherent, SkyWater Technology Foundry and X-Fab.
Projects Supported by the CHIPS Investment
Coherent will receive up to $33 million to expand and modernize the manufacturing cleanroom in its Sherman, Texas facility. The investment, expected to generate around 70 direct jobs, aims to transform it into the first ever 150mm indium phosphide manufacturing line.
SkyWater Technology will get up to $16 million for its facility in Bloomington, Minnesota. The award will be used to overhaul equipment, enhance the cleanroom, advance its space and IT systems and boost production of 90nm and 130nm wafers by approximately 30 percent. An estimated 70 jobs are expected to be created.
X-Fab will utilize an award of up to $50 million to revamp its silicon carbide foundry facility in Lubbock, Texas. As the only silicon carbide fab in the country, its modernization is necessary to increase production and bolster global decarbonization initiatives. The investment will create an estimated 15 jobs.
“This proposed investment allows Coherent to accelerate its industry leadership in InP technology and manufacturing,” said Giovanni Barbarossa, chief strategy officer and president of materials segment at Coherent.
SkyWater CEO Thomas Sonderman stated, “As America’s Trusted Foundry, through our business model and expanding capabilities, we are creating a national asset for technology development, which is in a critical state domestically.”
Rico Tillner, CEO of X-FAB Texas, added, “The demand for silicon carbide technologies will be strong for the long term and we are proud to provide solutions that support the transition to electric mobility and renewable energy sources.”
Secretary of Commerce Gina Raimondo commented, “Today’s proposed investments across Texas and Minnesota would help bolster domestic chip production and help secure our supply chain for decades to come.”
