In a strategic move to enhance the United States’ semiconductor manufacturing capabilities, the U.S. Department of Commerce has signed a preliminary memorandum of terms with MACOM Technology Solutions Inc. The agreement proposes up to $70 million in direct funding under the CHIPS and Science Act to support the expansion and modernization of MACOMs in Lowell, Massachusetts, and Durham, North Carolina.
MACOM specializes in designing and manufacturing high-performance semiconductors for defense and commercial sectors. The planned upgrades at the Lowell and Durham facilities are set to increase the production of compound semiconductors, including 100mm Gallium Nitride (GaN) and Gallium Arsenide (GaAs) wafers. Additionally, the project aims to introduce the production of 150mm GaN wafers, vital for high-frequency defense systems like radar and various telecommunications applications.
The proposed investment is expected to create approximately 350 manufacturing jobs and nearly 60 construction jobs across both states. This development underscores the broader objectives of the CHIPS and Science Act to revitalize domestic semiconductor manufacturing, reduce reliance on foreign supply chains, and stimulate economic growth within local communities.
U.S. Secretary of Commerce Gina Raimondo highlighted the significance of this initiative, stating, “Today’s announcement with MACOM is another example of how CHIPS for America is making targeted and strategic proposed investments across the semiconductor industry.” She emphasized that such efforts are crucial for strengthening U.S. supply chain security and advancing technological leadership in the 21st century.
National Economic Advisor Lael Brainard also commented on the development, noting, “Today’s announcement showcases how the CHIPS and Science Act is enabling the United States to develop the most advanced technologies while protecting our national security and bringing economic opportunity to communities throughout the country.”
Beyond facility enhancements, MACOM is dedicated to expanding its workforce development programs. The company offers comprehensive training, professional development, internships, and tuition reimbursement to support employee career growth. Collaborations with leading technical universities and colleges across the United States further bolster semiconductor research and cultivate a skilled workforce for the future. The proposed CHIPS funding will enable MACOM to broaden these initiatives, particularly in manufacturing and technical positions.
MACOM’s five-year strategic investment plan totals up to $345 million, aiming to modernize its Massachusetts and North Carolina semiconductor wafer fabrication facilities. The company plans to offset approximately 50% of the costs through federal funding from the CHIPS and Science Act, federal investment tax credits, and state funding, including up to $15.7 million from the Massachusetts Technology Collaborative. MACOM’s operating cash flow will self-fund the remaining investment over five years.
This initiative aligns with the broader goals of the CHIPS and Science Act, which seeks to invest in America’s semiconductor industry, stimulate private sector investment, create well-paying jobs, and revitalize communities. Since the beginning of the Biden-Harris Administration, semiconductor and electronics companies have announced nearly $450 billion in private investments, largely catalyzed by public investment. CHIPS for America, a component of this act, has awarded over $33 billion of the over $36 billion in proposed incentives funding allocated to date, with announcements across 22 states expected to create over 125,000 jobs.
The partnership between the U.S. Department of Commerce and MACOM Technology Solutions exemplifies a concerted effort to bolster domestic semiconductor manufacturing. By investing in critical infrastructure and workforce development, this initiative aims to enhance national security, foster technological innovation, and drive economic growth in the semiconductor sector.
