Dive Brief:
- The Department of Commerce will provide up to $70 million to chipmaker Macom under the CHIPS and Science Act to expand its facilities in Lowell, Massachusetts, and Durham, North Carolina.
- The projects will create 350 manufacturing and 60 construction jobs across the two sites, according to the Commerce Department.
- The funding is part of a broader, five-year capital investment plan Macom announced Tuesday to invest up to $345 million to modernize the two facilities.
Dive Insight:
The funding will increase Macom’s production of critical compound semiconductors, such as 100-millimeter gallium nitride and gallium arsenide, which are critical for defense and commercial systems. The money would also introduce production of 150mm GaN, according to the DOC release.
For its Massachusetts facility, Macom plans to expand its cleanrooms, perform infrastructure upgrades, modernize its current 100-mm production lines and add a 150mm GaN-on-silicon manufacturing capability for advanced node applications.
Meanwhile, at its North Carolina fab, the company will expand its cleanrooms, integrate infrastructure upgrades and install 150mm wafer size production capabilities, as well as specialized epitaxial capabilities.
Both facilities are certified as trusted foundries by the Department of Defense, supplying companies such as Northrop Grumman. They manufacture compound semiconductors critical for high-frequency defense systems, such as airborne and ground-based radar, as well as commercial applications like telecommunications, according to the Commerce Department. Other DoD suppliers include Bae Systems and GlobalFoundries.
Macom plans to offset half the expansion costs through a combination of CHIPS funding, federal investment tax credits and direct state funding, including $15.7 million from the Massachusetts Technology Collaborative.
For building out its workforce, Macom plans to expand training, internships and collaborations with universities.
The semiconductor company is capitalizing on recent double-digit growth. Revenue reached $200.7 million in Q4 2024, up 33.5% year over year, compared to $150.4 million.
The latest CHIPS announcement marks the 29th company to receive funding, bringing the total awards to nearly $32 billion and nearing the $39 billion allocation of the CHIPS manufacturing fund.
