CHIPS Act Continues Momentum: New Awards to Micron, Absolics, and More

  • Public Spend Forum

    • The Department of Commerce has announced another round of CHIPS Act awards, further solidifying efforts to strengthen the U.S. semiconductor industry. These new awards target critical areas of semiconductor manufacturing and innovation, showcasing the broad impact of the CHIPS and Science Act in advancing domestic capabilities and reducing reliance on foreign suppliers.

    Onshoring the Production of Materials for Microchip Production

    The first batch of awards will support Coherent, SkyWater, and X-Fab. Coherent is a leader in photonics and laser technologies and their project focuses on scaling the production of indium phosphide (InP), a material essential for semiconductor manufacturing. SkyWater is a DOD Trusted Foundry and this investment would upgrade equipment at their Bloomington, MN facility. X-Fab operates one of the only high-volume Silicon Carbide Foundry facilities in the US and the investment would expand the facility along with Texas-based workforce development initiatives.

    Another pair of awards have been granted to Absolics and Entegris to construct new facilities for critical semiconductor supply chain materials. Absolics specializes in glass substrates for semiconductor applications. They will leverage their award of up to $75 million to build a facility in Covington, Georgia to expand operations to produce high-performance glass interposers. Meanwhile, Entegris is a leading supplier of advanced materials and process solutions for microelectronics. They will use their award of up to $77 million to construct a facility in Colorado Springs, Colorado to support the production of liquid filtration products and Front-Opening-Unified-Pods (FOUPs). This investment highlights the CHIPS Act’s focus on supporting the onshored production of foundational semiconductor materials that are critical for modern electronics.

    Increasing Domestic Production Capacity for Microchips

    Finally, Micron Technology received awards to expand its facilities in Idaho and New York. Micron’s projects aim to significantly increase U.S. production of memory chips, which are essential for applications ranging from data centers to consumer electronics. This expansion represents one of the largest semiconductor investments under the CHIPS Act and demonstrates the program’s focus on high-volume, high-impact manufacturing

    Continued Momentum of the CHIPS Act in Securing Microelectronics Supply Chains.

    These awards reflect the growing momentum of the CHIPS Act, which continues to attract investments in key areas of semiconductor technology. By supporting companies like Coherent, Absolics, and Micron, the program is fostering innovation, creating jobs, and fortifying the domestic semiconductor supply chain. As these projects progress, they bring the U.S. closer to achieving a resilient and self-sufficient semiconductor ecosystem.

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