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