The US Department of Commerce signed three separate preliminary memoranda of terms  under the CHIPS and Science Act to provide up to 33 million dollars in proposed direct funding to Coherent, up to 16 million to SkyWater Technology Foundry, and up to 50 million to X-Fab. The proposed investment in Coherent would support the expansion and modernization of the company’s existing facility in Sherman, Texas, and is expected support approximately seventy direct jobs. The proposed investment in SkyWater would support the modernization of its existing facility in Bloomington, Minnesota, and is also expected to create around seventy jobs. The proposed investment in X-Fab would support the modernization and expansion of its existing silicon carbide fab in Lubbock, Texas, and is expected to create up to an estimated 150 jobs.

Indium phosphide optoelectronic devices are widely used in applications such as datacom and telecom transceivers including for AI infrastructure applications, advanced sensing for consumer electronics, and medical and automotive applications.

“This proposed investment allows Coherent to accelerate its industry leadership in InP technology and manufacturing,” said Dr Giovanni Barbarossa, chief strategy officer and president, materials segment, for Coherent. “We are very excited for this opportunity to accelerate the delivery of world-class optoelectronic products that will enable America’s economic future.”

“The demand for silicon carbide technologies will be strong for the long term, and we are proud to provide solutions that support the transition to electric mobility and renewable energy sources, said Rico Tillner, CEO of X-Fab Texas. “X-Fab Texas’ silicon carbide technologies are leading in quality and yield and provide a long-term perspective for the site. The proposed CHIPS funding will support the future success of X-Fab Texas and will contribute to the establishment of a domestic supply chain for silicon carbide.”

Coherent, SkyWater, and X-Fab have indicated they plan to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25 % of qualified capital expenditures.