The Department of Commerce (DoC) has reached a preliminary agreement with California-based chipmaker Infinera for up to $93 million in CHIPS and Science Act funding to support two facility expansion efforts.
The CHIPS and Science Act, signed into law by President Biden in August 2022, provides up to $52 billion in funding to support semiconductor manufacturers in expanding their production capabilities.
If the funding deal goes final, Infinera will use the money to help build a semiconductor fab near its headquarters in San Jose, Calif., and establish an advanced test and packaging facility in Bethlehem, Pa. The projects are expected to increase Infinera’s domestic production capacity by tenfold, and will create up to 500 manufacturing jobs and 1,200 construction job.
“From artificial intelligence to electric vehicles to telecommunications infrastructure, 21st century technologies all rely on optical semiconductors like the ones manufactured by Infinera,” said Commerce Secretary Gina Raimondo in a statement.
“The Biden-Harris Administration is taking meaningful steps towards achieving the economic and national security goals of the CHIPS and Science Act with proposed investments like this one, which will help us secure semiconductor manufacturing projects and create high-tech jobs across the country,” she continued.
Infinera’s expanded production of photonic integrated circuits (PICs) will help support the Department of Defense, intelligence community, and national security agencies with emerging technologies, such as quantum technology and LiDAR. The optical semiconductors use light to enable the fast and reliable transfer of data across broadband networks, AI systems, and between data centers.
The test and packaging facility will help bolster domestic and global packaging supply chains and include a research and development space that will focus on emerging optical packaging technologies, such as 2.5D and 3D packaging. The fab will have over 40,000 square feet of cleanroom space to increase its manufacturing capabilities.
“We are grateful for the bipartisan efforts under the CHIPS and Science Act to increase semiconductor fabrication and packaging in the U.S. and protect our national and economic security,” David Heard, CEO of Infinera, said in a statement. “Our unique photonic semiconductors address the increased demand for bandwidth from consumers while opening new markets inside the data center driven by the explosive growth in AI workloads.”
Infinera has partnered with the SEMI Foundation to develop its workforce with plans to offer apprenticeships in California and later expand to Pennsylvania.
