Entegris receives $75M in Chips Act grant to boost US semiconductor manufacturing amid surging demand for AI chips
Nickie Louise
Posted On June 26, 2024
The U.S. government has granted up to $75 million in funding to Entegris, an American supplier in chip manufacturing, to support the establishment of a new plant in Colorado. The move is part of the CHIPS Act initiative aimed at bolstering domestic production of semiconductor-related products amidst soaring demand for AI chips.
In an announcement on Wednesday, Entegris said it has entered a preliminary agreement with the Commerce Department, paving the way for potential funding under the CHIPS Act. This legislation, passed in 2022 with nearly $53 billion allocated, seeks to revitalize U.S. semiconductor manufacturing capabilities.
“We’re not just bringing cutting-edge chip technology and factories to the United States, but also strengthening the ecosystem of suppliers crucial to advanced manufacturing,” remarked U.S. Secretary of Commerce Gina Raimondo in a statement, Reuters reported.
This development marks the latest in a series of grants under the CHIPS Act as the U.S. endeavors to expand its semiconductor production capacity and attract investments that might otherwise go to facilities in China and elsewhere. Major beneficiaries include Samsung from South Korea, Intel-based in the U.S., and Taiwan’s TSMC.
Entegris said it plans to utilize the funds to construct a new facility in Colorado Springs, focused on scaling up production of front-opening-unified pods, essential for transporting and protecting silicon wafers during semiconductor manufacturing. The facility will also enhance capabilities in advanced liquid filtration and purification products.
Based in Billerica, Massachusetts, Entegris anticipates the new plant to commence initial commercial operations by 2025, projecting the creation of approximately 600 permanent jobs over the coming years, in addition to around 500 jobs during the construction phase.
In 2022, Congress approved the CHIPS Act with $52.7 billion earmarked for research and manufacturing subsidies aimed at boosting domestic semiconductor output. Lawmakers also granted $75 billion in government loan authority to further support these initiatives.
