Infinera receives $93 million from the CHIPS Act to expand production and packaging of semiconductors 

Infinera receives $93 million from the CHIPS Act to expand production and packaging of semiconductors 

Nov. 7, 2024
These projects would increase its domestic manufacturing capacity and create up to 1,700 manufacturing and construction jobs.  

Infinera has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce. As part of the agreement, Infinera will receive up to $93 million in direct funding as part of the bipartisan CHIPS and Science Act. The company, which specializes in open optical networking solutions and advanced optical semiconductors, is also eligible for tax credits available under the CHIPS and Science Act, which could result in $200 million in incentives.  

Infinera plans to use the funding to support the expansion and modernization of both Infinera’s semiconductor capabilities in Silicon Valley, California and its advanced test and packaging capabilities in Lehigh Valley, Pennsylvania. According to the company, these projects would increase its domestic manufacturing capacity and create up to 1,700 manufacturing and construction jobs.  

What people are saying

In a recent quote, David Heard, Infinera CEO, said, “We are grateful for the bipartisan efforts under the CHIPS and Science Act to increase semiconductor fabrication and packaging in the U.S. and protect our national and economic security. The proposed CHIPS funding will enable us to better secure our supply chain and compete more effectively with foreign adversary nations. Our unique photonic semiconductors address the increased demand for bandwidth from consumers while opening new markets inside the data center driven by the explosive growth in AI workloads.”

Manufacturers investing in California

ElectricFish unveils EV charging solution manufacturing facility in California 
To help support the project, ElectricFish received a $1.69 million grant from the California Energy Commission (CEC).

Battery system manufacturer opens new plant in California
The company, which specializes in lithium-ion battery systems, built the 65,000-square-foot plant with enhanced pack assembly automation.

Bloom Energy receives $75 million in tax credits to expand fuel cell manufacturing at its California facility 
Bloom plans to expand domestic manufacturing and fuel cell and electrolyzer production capacity.

Manufacturers investing in Pennsylvania

Victaulic invests $100 million to expand manufacturing foundry in Pennsylvania 
This additional space will be used to house new molding lines, melt furnaces, core machines, and automated finishing and paint equipment.

WATT Fuel Cell to increase manufacturing capabilities at Pennsylvania plant
The expansion will allow WATT to increase production of the company's newest distributed energy, small-scale fuel cell products.

U.S. Boiler Company invests $5.5 million to expand manufacturing facility in Pennsylvania
As part of the project, U.S. Boiler Company will build a new 45,000-square-foot manufacturing facility featuring new production lines, conveyors, and storage racking.

Manufacturers receiving funds from the CHIPS Act

Wolfspeed receives $750M from the CHIPS Act to complete greenfield U.S. capacity expansion plan 
The money will be used to enhance the company’s long-term growth plans and bolster domestic production of silicon carbide. 

HP to receive $50 million from the CHIPS Act to modernize Oregon facility 
The facility is part of HP’s “lab-to-fab” ecosystem, which covers everything from R&D to commercial manufacturing.

Texas Instruments receives $1.6 billion from CHIPS Act to support wafer fab facilities in Texas and Utah 
TI also hopes to receive an additional $6 billion to $8 billion from the U.S. Department of Treasury's Investment Tax Credit.

Investing in American manufacturing in 2024

This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.

About the Author

Alexis Gajewski | Senior Content Strategist

Alexis Gajewski has over 15 years of experience in the maintenance, reliability, operations, and manufacturing space. She joined Plant Services in 2008 and works to bring readers the news, insight, and information they need to make the right decisions for their plants. Alexis also authors “The Lighter Side of Manufacturing,” a blog that highlights the fun and innovative advances in the industrial sector. 

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