News: Optoelectronics
17 October 2024
Infinera allocated $93m of proposed US CHIPS Act funding
The US Department of Commerce have signed a non-binding preliminary memorandum of terms for Infinera Corp of San Jose, CA, USA — a vertically integrated manufacturer of open optical networking systems and optical semiconductors — to receive up to $93m in direct funding as part of the CHIPS and Science Act. This proposed direct funding, when combined with investment tax credits available under the CHIPS and Science Act, could result in more than $200m in total federal incentives as well as potential state and local incentives.
The proposed funding would support the expansion and modernization of Infinera’s semiconductor capabilities in two US locations:
- San Jose, Silicon Valley, California: Construction of a new, modernized fab and foundry with over 40,000ft2 of cleanroom space to expand its indium phosphide (InP) photonic integrated circuits (PICs) manufacturing capacity ten-fold to meet future capacity and capability demands.
- Bethlehem, Lehigh Valley Pennsylvania: Construction of a new advanced test &packaging facility focused on meeting the increasing demand for InP PICs. This project would also help to bolster the domestic and global packaging supply chains while keeping a domestic packaging base for Infinera’s defense and intelligence customers and the commercial and AI sectors. Additionally, this facility would include dedicated R&D space focused on newer optical packaging technologies, such as 2.5D and 3D packaging and co-packaged optics.
Combined proposed funding for these two projects could create up to 1700 jobs (500 in manufacturing and 1200 in construction) while strengthening the USA’s supply chain, economic and national security, it is reckoned.
“We are grateful for the bipartisan efforts under the CHIPS and Science Act to increase semiconductor fabrication and packaging in the US and protect our national and economic security,” states Infinera’s CEO David Heard. “The proposed CHIPS funding will enable us to better secure our supply chain and compete more effectively with foreign adversary nations,” he adds. “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.”
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