Coherent, SkyWater and X-Fab receive CHIPS Act boost
The Biden-Harris Administration has announced USD 99 million in proposed CHIPS Act funding for Coherent, SkyWater Technology, and X-Fab to strengthen U.S. semiconductor manufacturing and supply chain resilience, creating over 290 jobs across Texas and Minnesota.
Coherent is set to receive USD 33 million to expand and modernise its existing 700,000-square-foot facility in Sherman, Texas. The funding will support the establishment of the world’s first 150mm indium phosphide (InP) manufacturing line, a critical advancement for optoelectronic devices used in AI infrastructure, telecommunications, and automotive technologies. This project is expected to create approximately 70 new jobs.
SkyWater Technology in Bloomington, Minnesota, will benefit from USD 16 million in proposed funding to modernise its production facility. Upgrades will include new equipment, enhanced cleanroom capabilities, and expanded wafer production (90nm and 130nm) capacity by 30%. This project will create an estimated 70 jobs while. Additional funding of USD 19 million from Minnesota’s Forward Fund will further support this initiative.
In Lubbock, Texas, X-Fab is slated to receive USD 50 million to expand its SiC foundry, the only high-volume SiC manufacturing facility in the US. This investment is expected to create up to 150 jobs while addressing global supply chain vulnerabilities exposed during the COVID-19 pandemic.
Coherent, SkyWater and X-Fab have also indicated they plan to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures.
