American chip manufacturing supplier Entegris has secured up to $75 million in federal funding under the CHIPS and Science Act.
This preliminary agreement, announced Wednesday, aims to enhance the United States' domestic chip production capabilities and create numerous jobs, by developing a new state-of-the-art facility in Colorado Springs, Colorado (via Reuters).
This agreement between Entegris and the Biden administration is part of the broader initiative under the CHIPS and Science Act to revitalize the US semiconductor industry.
This law looks to reduce US dependency on foreign manufacturing, particularly from China, by investing $52.7 billion in research and manufacturing subsidies and an additional $75 billion in government loan authority.
CHANDLER, ARIZONA - MARCH 20: US President Joe Biden gives a speech at Intel Ocotillo Campus on March 20, 2024 in Chandler, Arizona. Biden announced $8.5 billion in federal funding from the CHIPS Act for Intel Corp. to manufacture semiconductors in Arizona. Photo by Rebecca Noble/Getty Images
Boosting the US Semiconductor Supply Chain
The new Entegris facility will be constructed in phases. The first phase will focus on producing liquid filter membranes and Front Opening Unified Pods (FOUPs).
FOUPs are specialized containers invented by Entegris to secure semiconductor wafers during transportation in the manufacturing process. These containers are essential for top chipmakers, including Intel, TSMC, Micron, and GlobalFoundries.
The second phase of the project will support the production of advanced liquid filters, purifiers, and fluid handling solutions. This expansion will significantly enhance Entegris' manufacturing capabilities and its role in the semiconductor supply chain.
The establishment of the new facility is expected to create nearly 600 direct manufacturing jobs and 500 construction jobs by 2030. This significant job creation is seen as a boost for the local economy in Colorado Springs and is part of a broader effort to create quality, good-paying jobs in the United States.
Entegris has also stressed its commitment to environmental sustainability. The company aims to reduce greenhouse gas emissions by 42% by 2030 from the 2020 baseline. The facility designs will prioritize water recovery and recycling, to recycle 80% of process water.
More Financial Incentives
Entegris plans to claim the Department of the Treasury's Investment Tax Credit, which can cover up to 25% of qualified capital expenditures.
The CHIPS for America initiative, under which this funding falls, has announced up to $29.5 billion in proposed funding across eleven preliminary memoranda of terms.
This initiative is expected to unlock over $300 billion in public and private investment by the end of the decade, tripling US domestic semiconductor manufacturing capacity from 2022 to 2032.
The US government has made major investments in the semiconductor industry through the CHIPS Act. In March, Intel received a record $19.5 billion in grants and loans to boost its semiconductor production.
In April, Taiwan Semiconductor Manufacturing Co. (TSMC) was awarded a preliminary agreement of up to $6.6 billion to support the development of three fabrication plants in Arizona.
By May, the Biden administration had allocated $285 million to establish a CHIPS Manufacturing USA institute, dedicated to developing digital twin technology for semiconductor manufacturing.
