U.S. Awards $246.4M to ADI, Coherent, IntelliEPI, and Sumika

The U.S. Department of Commerce has announced the signing of four separate non-binding preliminary memorandum agreements (PMTs) under the CHIPS and Science Act. These agreements aim to provide proposed direct funding to various companies: up to $105 million to Analog Devices, Inc. (ADI), up to $79 million to Coherent, up to $10.3 million to Intelligent Epitaxy Technology (IntelliEPI), and up to $52.1 million to Sumika Semiconductor Materials Texas Inc. (Sumika).

The proposed investment for ADI will support the expansion and modernization of two advanced R&D and RF microwave systems manufacturing plants in Chelmsford, Massachusetts. This initiative aims to increase production capacity for modules used in commercial, aerospace, and defense applications, along with new commercial phased-array antenna and sensor solutions. Additionally, the funding will contribute to a $1 billion project aimed at modernizing two wafer fabs in Beaverton, Oregon, and Camas, Washington. The project is expected to boost production by 70% and bring 180nm and 350nm process nodes back to the U.S., while reducing solvent usage and enhancing environmental sustainability.

Vincent Roche, CEO and Chairman of Analog Devices, commented, "ADI is at the forefront of semiconductor manufacturing expansion in the U.S. This investment will help us strengthen workforce training and community partnerships while advancing critical process technologies that benefit our global customer base."

As part of the Oregon and Washington projects, ADI is introducing a Semiconductor Advanced Manufacturing Upskilling (SAMU) training facility, designed to support manufacturers and collaborators within what is called the "Silicon Forest."

Coherent is set to receive $79 million to expand its existing silicon carbide (SiC) manufacturing facility in Easton, Pennsylvania. This expansion will increase production capacity for 150mm and 200mm SiC substrates by 750,000 wafers and will double the capacity for SiC epitaxial wafer manufacturing, backend processing, and testing for electronic performance and reliability.

Both ADI and Coherent have indicated their intention to apply for the U.S. Department of the Treasury's Advanced Manufacturing Investment Credit (CHIPS ITC), which offers a 25% credit on qualifying capital expenditures.

Sumika Semiconductor Materials Texas Inc. will receive $52 million to support the construction of a greenfield facility in Baytown, Texas, for the production of ultra-high-purity (UHP) isopropyl alcohol (IPA), used in advanced logic and memory chip manufacturing.

Lastly, IntelliEPI is set to receive $10 million to expand and modernize its existing manufacturing plant in Allen, Texas. The investment will enable the company to increase the production of indium phosphide (InP), gallium arsenide (GaAs), gallium antimonide (GaSb), and gallium nitride (GaN) epitaxial wafers using molecular beam epitaxy (MBE) technology.