In order to bolster semiconductor manufacturing in the United States, SkyWater Technology and Intel Corporation could receive combined investments of up to $7,876,000,000 (€7,468,021,963.47) under the CHIPS for America programme, administered by the U.S. Department of Commerce.
The Biden-Harris Administration will reportedly award Intel Corporation up to $7.86 billion (€7,454,653,229) in direct funding for its commercial semiconductor manufacturing projects. This will contribute to the company’s established plans to drive advanced packaging projects and ‘critical’ semiconductor manufacturing at its Arizona, New Mexico, Ohio, and Oregon sites.
Intel had already intended to invest over $100 billion (€94,838,500,000) into its advanced packaging capacity, chipmaking capabilities, and other essential facets of ‘economic and national security’. Now it expects to strengthen supply chains and R&D in the U.S., contribute to American leadership in semiconductor manufacturing and technology capabilities, and support ‘tens of thousands’ of jobs.
The company also plans to claim the U.S. Treasury Department’s Investment Tax Credit, projected at up to 25% of qualified investments of more than $100 billion.
“With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil,” explained Pat Gelsinger, CEO of Intel. “Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security.
“Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.”
Among other aspects of CHIPS for America, SkyWater is involved in process engineering for advanced packaging, underwriting local and federal workforce initiatives, and participation in the U.S. Department of Defense’s Microelectronics Commons network in support of warfighter applications.
Now the company has signed a preliminary memorandum of terms valued at up to $16 million (€15,163,200). The proposed funding is expected to result in a 30% increase in production capacity and drive the development of SkyWater’s 200 mm semiconductor technology in the U.S.; it is set to help modernize its facility and meet growing demand for domestically produced microelectronics, while also boosting time to market for customers.
Additionally, SkyWater hopes that the funding would ‘provide federal incentives’ to upscale production capabilities at its facility in Minnesota, with modernization and equipment upgrades set to serve customers in the biomedical, industrial, and thermal imaging markets, as well as quantum computing, aerospace, and defence.
“We are pleased to receive this important CHIPS funding, including the Advanced Manufacturing Investment Tax Credit to expand our nation’s onshore capacity,” said Thomas Sonderman, CEO of SkyWater. “We’ve been the beneficiary of significant government programme awards over the past several years, and we’re proud of our role in helping to expand the domestic microelectronics infrastructure and strengthen the U.S. supply chain.
“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. We have been working to meet the specific needs of the Defense Industrial Base and commercial companies, developing the technologies of the future. The investments today are another milestone along this path.”
“If we want to continue leading the global economy, we must be a country that makes stuff, invents things, and exports to the world,” continued U.S. Senator Amy Klobuchar. “This significant investment in SkyWater Technology will transform domestic semiconductor manufacturing.
“I’m proud to have worked with SkyWater Technology to secure the resources needed to ensure Minnesota remains at the forefront of technological innovation. This is good for our state’s workers and businesses.”
Regarding the SkyWater investment, U.S. Secretary of Commerce Gina Raimondo stated: “The Biden-Harris Administration’s bipartisan CHIPS and Science Act is making targeted investments to meet market demands for technology critical to our national and economic security. Today’s proposed investments across Texas and Minnesota would help bolster domestic chip production and help secure our supply chain for decades to come.”
For Intel Corporation, she added: “The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and Intel is expected to play an important role in the revitalization of the U.S. semiconductor industry. Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is catalyzing Intel to make one of the largest investments in semiconductor manufacturing in U.S. history.”
These announcements come after the U.S. Department of Commerce previously signed a non-preliminary memorandum of terms with Amkor; the company was set to receive up to $400 million (€379,208,024) in funding to support the ‘largest’ outsourced advanced packaging and test facility in the country.
Back in July, the Department issued a Notice of Intent opening a competition for new R&D deliveries, seeking to secure and drive domestic capacity for semiconductor advanced packaging. Cooperative agreements were expected to award $150 million (€142,213,794.75) in federal funding to each research area in order to unlock prototype development opportunities.
Meanwhile in Europe, the European Commission approved a €5 billion measure to build and operate a ‘first-of-its-kind’ microchip manufacturing plant in partnership with European Semiconductor Manufacturing Company. The Dresden-based facility aims to produce 480,000 silicon wafers annually when it operates at full capacity by 2029.
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