Proposed CHIPS Investments in New York and Pennsylvania Would Help Enhance Domestic Production Capacity of Key Components for U.S. Semiconductor Manufacturing
Today, the Biden-Harris Administration announced that the U.S. Department of Commerce signed two separate preliminary memoranda of terms (PMT) under the CHIPS and Science Act to provide Corning up to $32 million in proposed direct funding and Powerex up to $3 million in proposed direct funding. President Biden and Vice President Harris signed the bipartisan CHIPS and Science Act to usher in a new era of semiconductor manufacturing in the United States, bringing with it a revitalized domestic supply chain, good-paying jobs, and investments in the industries of the future. The proposed investment in Corning would support the company’s expansion of its existing manufacturing facility in Canton, New York, and is expected to create 130 manufacturing jobs and over 175 construction jobs. The proposed investment in Powerex would support the modernization and expansion of the company’s back-end production facility in Youngwood, Pennsylvania, and is expected to create over 55 manufacturing jobs and up to 20 construction jobs.
“Because of the Biden-Harris Administration’s bipartisan CHIPS and Science Act, we are making targeted proposed investments across the semiconductor supply chain that are driving the revitalization of this industry in America,” said U.S. Secretary of Commerce Gina Raimondo. “These proposed actions are creating quality jobs across the country while advancing U.S. technological leadership.”
The proposed funding announced today would support the following projects:
“Corning is proud to be an industry leader of specialty glass and precision optical lenses for the semiconductor industry, and our Canton facility plays a vital role in the nation’s mission to strengthen the domestic semiconductor supply chain,” said Corning Incorporated Chairman and CEO Wendell Weeks. “This proposed investment and the continued commitment in Canton will enable us to establish the next-generation manufacturing capabilities needed to produce vital materials for lithography tools that will develop the world’s most complex microchips, strengthening our commitment to advancing semiconductor technology and job creation in the United States.”
“We’re grateful for the Department of Commerce’s proposed support through the CHIPS and Science Act, which would enable small companies like ours to invest in modern equipment and expand production. With this proposed funding, we’ll enhance our production capabilities and create new jobs, providing growth and advancement opportunities for our employees,” said Powerex CEO Joseph Wolf. “This proposed investment allows us to meet rising demand with U.S.-made products while building a stronger future for our team and community. Powerex plays an important role in supporting U.S. Department of Defense programs, with over half of our power module production dedicated to military applications. This proposed funding would help Powerex mitigate supply chain risks and address the constraints brought on by the rising demand for our power modules.”
Corning and Powerex have both indicated they plan to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures. Click here to learn more about the tax credit.
As explained in its first Notice of Funding Opportunity, the Department of Commerce may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a potential CHIPS incentives award, including the amount and form of the award. The award amounts are subject to due diligence and negotiation of award documents and are conditional on the achievement of certain milestones. After a PMT is signed, the Department of Commerce begins a comprehensive due diligence process on the proposed projects and continues negotiating or refining certain terms with the applicant. The terms contained in any final award documents may differ from the terms of Corning and Powerex’s PMT’s being announced today.
The report benchmarked 14 of the most prominent ESG and sustainability assurance providers globally. To qualify companies needed to demonstrate that they could meet the diverse needs of large, complex…
View ArticleIndustry updates and weekly newsletter direct to your inbox!