The Commerce Department awarded two proposed direct funding deals to Corning and Powerex to continue efforts to shore up the domestic supply chain of chips
“Because of the Biden-Harris Administration’s bipartisan CHIPS and Science Act, we are making targeted proposed investments across the semiconductor supply chain that are driving the revitalisation of this industry in America,” said Gina Raimondo, US Secretary of Commerce. “These proposed actions are creating quality jobs across the country while advancing US technological leadership.”
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Corning manufactures optical materials, components, and systems used in the production of semiconductors, such as Calcium Fluoride (CaF2) and glass materials like High Purity Fused Silica.
The materials produced by Corning are utilised in semiconductor lithography systems. They offer attributes such as high transmission and a low coefficient of thermal expansion, making them ideal for transmitting light from the lithography machine’s light source to the semiconductor wafer.
As part of its deal with the Commerce Department, Corning will be entitled to up to $32 million in direct funding to support the expansion of its manufacturing facility in Canton, New York, which is expected to create 130 manufacturing jobs and more than 175 construction jobs.
“This proposed investment and the continued commitment in Canton will enable us to establish the next-generation manufacturing capabilities needed to produce vital materials for lithography tools that will develop the world’s most complex microchips, strengthening our commitment to advancing semiconductor technology and job creation in the US,” said Wendell Weeks, CEO and chair of Corning Inc.
Powerex, meanwhile, is entitled to up to $3 million in proposed direct funding to expand its facility in Youngwood, Pennsylvania.
Powerex packages semiconductor power modules found in defence applications, including the F-35 fighter jet, in addition to commercial and industrial uses.
With its CHIPS Act funds, Powerex would nearly double capacity its manufacturing capacity while also modernising key production equipment. The project will create an estimated 55 manufacturing jobs and up to 20 construction jobs.
“With this proposed funding, we’ll enhance our production capabilities and create new jobs, providing growth and advancement opportunities for our employees,” said Joseph Wolf, CEO of Powerex. “This proposed investment allows us to meet rising demand with U.S.-made products while building a stronger future for our team and community.”
Beyond the direct funding, both Corning and Powerex are able to claim tax credits of 25% on expenditures made during their respective expansions.
This marked the first award of CHIPS Act subsidies since Donald Trump won the US election.
Trump has threatened to axe the CHIPS and Science Act, which he described as “bad” in a podcast appearance in late October.
House Speaker Mike Johnson affirmed Trump’s intentions when told reporters the GOP “probably will” repeal the CHIPS Act
The Biden administration has been racing to finalise CHIPS Act deals before the end of the year, including a hefty agreement with embattled manufacturer Intel, though persistent takeover rumours were reportedly impacting the process.
The President-Elect wants to replace the CHIPS Act with tariffs, in a similar move to how he plans to impose a 100% tariff on every car imported from Mexico, describing the concept as “more sophisticated, but no different.”
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