Infinera set to receive $93 million under CHIPS Act
The CHIPS Act funding would go toward a new “advanced packaging and test” semiconductor facility in Bethlehem and a semiconductor fabrication plant in San Jose, California.
Infinera, a California-based company that makes optical semiconductors and networking equipment for fixed line and mobile telecommunications networks, is set to receive USD 93 million from the federal government to build facilities in Bethlehem and California.
In June, Finnish giant Nokia announced that it was acquiring Infinera in a cash and stock deal worth USD 2.3 billion that is expected to close in 2025.
The CHIPS Act funding would go toward a new “advanced packaging and test” semiconductor facility in Bethlehem and a semiconductor fabrication plant in San Jose, California.
The Bethlehem plant is expected to bring up to 291 manufacturing jobs and 500 construction jobs to the region, while the California facility will increase the company’s manufacturing capacity by at least 10 times.
The exact timing of the project has not been made public. The award is a “non-binding preliminary memorandum of terms.”
“We are grateful for the bipartisan efforts under the CHIPS and Science Act to increase semiconductor fabrication and packaging in the US and protect our national and economic security,” Infinera CEO David Heard said in a statement. “The proposed CHIPS funding will enable us to better secure our supply chain and compete more effectively with foreign adversary nations.”
The 2022 CHIPS Act earmarked USD 50 billion to strengthen US semiconductor chip manufacturing.
Infinera is known for its indium phosphide-based photonic integrated circuits that enable fast transfer of large amounts of data. Demand for such chips is expected to increase as AI becomes more widespread, according to a media release from the US Department of Commerce.
“From artificial intelligence to electric vehicles to telecommunications infrastructure, 21st century technologies all rely on optical semiconductors like the ones manufactured by Infinera,” US Secretary of Commerce Gina Raimondo said in a statement.