Commerce Department announces $75 million deal with Entegris for microchip sector

The Department of Commerce announced today that it has reached a preliminary agreement with Entegris for up to $75 million in federal incentives proposed under the CHIPS and Science Act to relocate the critical semi-industrial supply chain. conductors and manufacture materials for cutting-edge chip production.

President Biden sign The CHIPS and Science Act was signed into law in August 2022, making up to $52 billion in funding available to incentivize semiconductor manufacturers to establish new manufacturing operations in the United States.

Today’s CHIPS investment would support the construction of Entegris’ manufacturing center in Colorado Springs, Colorado. The Commerce Department said the proposed funding would create nearly 600 manufacturing jobs over a period of years and about 500 construction jobs by 2030.

“We are not only bringing cutting-edge chip technology and factories to the United States, we are also strengthening the suppliers that make advanced manufacturing possible,” Commerce Secretary Gina Raimondo said in a statement. Press release. “Thanks to President Biden’s leadership, we are working to offshore and expand critical parts of the semiconductor supply chain, creating good-quality, good-paying jobs for Americans.”

“Today’s announcement would create more than 1,100 new jobs in Colorado, helping to energize the U.S. semiconductor industry and boost U.S. competitiveness,” added Natalie Quillian, deputy chief of staff. from the White House. “Thanks to the President’s CHIPS and Science Act, Colorado Springs and communities across the country are playing a vital role in America’s manufacturing renaissance. »

Entegris is a leading provider of materials and solutions for the semiconductor industry. Notably, the company invented FOUPs (Front Opening Unified Pods), “which are highly specialized containers that secure semiconductor wafers while they are handled and transported during the manufacturing process,” according to the release.

The company would use the funding to build its manufacturing center in phases. The first phase would support the production of FOUP – which are currently produced entirely overseas – and liquid filter membranes.

Commerce said the second phase would support the production of advanced liquid filters and purifiers as well as fluid management solutions – which are essential to advanced chip manufacturing.

In addition to the manufacturing center, Entegris also plans to expand its research and development capabilities in the United States by the end of the decade.

This announcement is the latest in recent CHIPS grants, with other big winners including Micron Technology, Rocket LabAnd Polar semiconductoramong others.

The next step for the Commerce Department after signing the preliminary agreement is to conduct due diligence on Entegris’ proposed project, followed by negotiation of a final award agreement.

“We are pleased to work with the Department of Commerce to help achieve the goal of strengthening the infrastructure of the U.S. semiconductor industry,” said Bertrand Loy, President and CEO of Entegris. “The proposed federal support would help better position us to quickly meet the needs of our customers, the leading chipmakers, while re-establishing Colorado as a major technology hub.”