The Biden-Harris Administration has awarded semiconductor manufacturers Absolics and Entegris with direct funding under the CHIPS and Science Act to support the construction of two new facilities in Georgia and Colorado.
A finalised deal will see Absolics, an affiliate of Korea-based SKC, receive up to $75m, and Entegris receive up to $77m. The news follows two previously signed preliminary memoranda of terms.
US Secretary of Commerce Gina Raimondo commended the Absolics and Entegris announcements, noting the importance they’ll have on the US semiconductor supply chain.
“As a result of these investments, the states of Colorado and Georgia will play an important role in revitalisation the US semiconductor industry while creating thousands of jobs in the process.”
Absolics will use the capital to support a Georgia-based site and to also develop substrates technology for use in advanced semiconductor packaging. The advanced packaging substrates market is currently concentrated in Asia, but Absolics will strengthen the US’s supply.
Entegris will build a Colorado-based manufacturing centre with the capital, with production targeting in 2025. Initially, the site will support producing liquid filtration products, as well as front-opening unified pods (FOUPs).
FOUPs are specialised containers that secure semiconductor wafers while they are handled and transported during the manufacturing process.
Over 1,500 jobs will be created with the company’s semiconductor efforts.
President Biden signed the CHIPS and Science Act, part of his Investing in America agenda, into law in August 2022, with the goal of strengthening US supply chains, creating good-paying jobs, protecting national security, and advancing US competitiveness.
Funding under the Act includes a $39bn grant programme for semiconductor manufacturers, as well as equipment and materials suppliers. It also includes $2bn for legacy chips, $13.2bn for R&D and workforce development, and $500m for international information and communication technology security and supply chain activities.
Read more: President Biden signs $52bn CHIPS Act into law
CHIPS for America will distribute direct funding to recipients for capital expenditures based on the completion of construction, production, and commercial milestones.
The programme will track the performance of each CHIPS incentives award via financial and programmatic reports, in accordance with the award terms and conditions.
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