The Department of Commerce announced today it has reached a preliminary agreement with Entegris for up to $75 million in proposed Federal incentives under the CHIPS and Science Act to onshore critical semiconductor supply chain and manufacturing materials for leading-edge chip production.
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.
Today’s CHIPS investment would support the construction of Entegris’ manufacturing center in Colorado Springs, Colo. The Commerce Department said the proposed funding would create almost 600 manufacturing jobs over a period of several years and about 500 construction jobs by 2030.
“We’re not just bringing leading-edge chip technology and fabs to the United States, we’re also bolstering the suppliers that make leading-edge manufacturing possible,” Secretary of Commerce Gina Raimondo said in a press release. “Thanks to President Biden’s leadership, we are working to onshore and expand critical pieces of the semiconductor supply chain, and create quality, good-paying jobs for Americans in the process.”
“Today’s announcement would create over 1,100 new jobs in Colorado that will help power America’s semiconductor industry and drive American competitiveness,” added White House Deputy Chief of Staff Natalie Quillian. “Thanks to the president’s CHIPS and Science Act, Colorado Springs and communities across the country are playing an essential role in America’s manufacturing renaissance.”
Entegris is a leading supplier of materials and solutions for the semiconductor industry. Notably, the company invented the Front Opening Unified Pods (FOUPs), “which are the highly specialized containers that secure semiconductor wafers while they are handled and transported during the manufacturing process,” according to the release.
The company would use the funding to build out its manufacturing center in multiple phases. The first phase would support the production of FOUPs – which are currently produced entirely abroad – and liquid filter membranes.
Commerce said the second phase would support the production of advanced liquid filters and purifiers as well as fluid handling solutions – which are critical to advanced chip manufacturing.
In addition to the manufacturing center, Entegris also plans to expand its research and development capabilities in the United States by the end of the decade.
The announcement is the latest of the recent CHIPS grants, with other big winners including Micron Technology, Rocket Lab, and Polar Semiconductor, among others.
The next step for the Commerce Department after signing the preliminary agreement is to conduct due diligence on Entegris’ proposed project, followed by negotiation of a final award agreement.
“We are excited to be working with the Department of Commerce to help achieve the goal of strengthening the U.S. semiconductor industry infrastructure,” said Entegris President and CEO Bertrand Loy. “This proposed Federal support would help further position us to respond quickly to meet the needs of our customers, the leading chip manufacturers, while also re-establishing Colorado as a major technology hub.”
