The Department of Commerce (DoC) announced on Friday that it has signed two separate preliminary agreements under the CHIPS and Science Act to provide Corning up to $32 million in proposed direct funding and Powerex up to $3 million in proposed direct funding.

The proposed investment in Corning would help to support the expansion of its existing manufacturing facility in Canton, N.Y. As for Powerex, the proposed investment would support the modernization and expansion of the company’s production facility in Youngwood, Pa.

President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.

“Because of the Biden-Harris administration’s bipartisan CHIPS and Science Act, we are making targeted proposed investments across the semiconductor supply chain that are driving the revitalization of this industry in America,” Secretary of Commerce Gina Raimondo said in a Nov. 8 press release. “These proposed actions are creating quality jobs across the country while advancing U.S. technological leadership.”

The proposed investment in Corning would help advance U.S. technology leadership in the lithography supply chain. Specifically, it would increase the production of Corning HPFS Fused Silica (High Purity Fused Silica) (HPFS) and EXTREME ULE Glass (Ultra Low Expansion Glass) and scale a novel technology manufacturing process in Canton.

According to the Commerce Department, HFPS and ULE materials are key components of deep ultraviolet (DUV) and extreme ultraviolet (EUV) lithography machines and photomasks – which are key to the manufacturing of leading-edge semiconductors.

“This proposed investment and the continued commitment in Canton will enable us to establish the next-generation manufacturing capabilities needed to produce vital materials for lithography tools that will develop the world’s most complex microchips, strengthening our commitment to advancing semiconductor technology and job creation in the United States,” said Corning Incorporated Chairman and CEO Wendell Weeks.

The proposed $3 million investment in Powerex would support the company’s total investment of $15 million to improve its production facility in Youngwood. This facility packages semiconductor power modules for important defense applications – such as F-35 fighter jets – and commercial and industrial applications.

“We’re grateful for the Department of Commerce’s proposed support through the CHIPS and Science Act, which would enable small companies like ours to invest in modern equipment and expand production. With this proposed funding, we’ll enhance our production capabilities and create new jobs, providing growth and advancement opportunities for our employees,” said Powerex CEO Joseph Wolf.

Corning and Powerex plan to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25 percent of qualified capital expenditures.

The next step for the Commerce Department after signing the two preliminary agreements is to conduct due diligence on both companies’ proposed projects, followed by negotiation of final award agreements.

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Grace Dille
Grace Dille
Grace Dille is MeriTalk's Assistant Managing Editor covering the intersection of government and technology.
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