MACOM has revealed its long-term investment strategy to update its semiconductor wafer fabrication facilities in North Carolina and Massachusetts. A recently signed preliminary, non-binding agreement with the CHIPS Program Office supports MACOM’s five-year strategic investment plan of up to $345 million.
The agreement would allow for up to $70 million in proposed direct funding from the U.S. Department of Commerce under the CHIPS and Science Act.
According to the preliminary terms, the CHIPS and Science Act would provide up to $180 million in support through a combination of direct Federal funding, Federal Investment Tax Credits, and State funding.
This includes up to $15.7 million in direct funding from the Massachusetts Technology Collaborative and additional incentives from the State of Massachusetts. Over the following five years, MACOM’s operating cash flow is anticipated to self-fund the remaining $165 million.
The expansion and market positioning strategy of the company to become a leading supplier of sophisticated RF, microwave, and millimeter wave semiconductor technologies is supported by this wafer fab capital investment plan. Defense, telecommunications, and datacenter applications, both current and future, are supported by its cutting-edge technology and product line.
In order to complete the specifics and conditions of a final agreement, the foundry and design services provider anticipates collaborating with the CHIPS Program Office.
Leadership Comments
“This plan will strengthen MACOM’s domestic semiconductor manufacturing capabilities, accelerate our growth strategy and enable us to better service our customers with leading technologies,” said Stephen G. Daly, President and Chief Executive Officer, MACOM.
