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Commerce Department and MACOM Partner to Bolster U.S. Semiconductor Supply Chain

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Commerce Department and MACOM Partner to Bolster U.S. Semiconductor Supply Chain

The U.S. Department of Commerce has signed a preliminary memorandum of terms (PMT) with MACOM Technology Solutions Inc., proposing up to $70 million in direct funding under the CHIPS and Science Act. This investment aims to enhance the resilience of the U.S. defense and telecommunications supply chains by expanding and modernizing MACOM’s facilities in Lowell, Massachusetts, and Durham, North Carolina.

Read also: Commerce Department Expands Advocacy to Boost U.S. Global Competitiveness

The initiative is expected to generate up to 350 new manufacturing jobs and nearly 60 construction jobs across the two states.

“This announcement demonstrates how CHIPS for America is making strategic investments to strengthen supply chain security and advance U.S. technological leadership,” stated U.S. Secretary of Commerce Gina Raimondo.

MACOM’s facilities, designated Category 1A Trusted Foundries by the Department of Defense (DoD), play a crucial role in producing advanced compound semiconductors. These components support high-frequency defense systems like radar and are essential for commercial applications in telecommunications. The funding will boost production capacity for existing 100mm Gallium Nitride (GaN) and Gallium Arsenide (GaAs) semiconductors while introducing 150mm GaN production.

By increasing domestic manufacturing capabilities, the investment aims to meet future demand for Radio Frequency (RF) and microwave GaN technology, both for defense and the broader industrial base.

National Economic Advisor Lael Brainard praised the initiative, saying, “The CHIPS and Science Act is driving the development of cutting-edge technologies, safeguarding national security, and fostering economic growth in communities across the U.S.”

MACOM plans to leverage the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which covers 25% of qualified capital expenditures, to support this project.

Additionally, the proposed funding will allow MACOM to expand its workforce development programs, including training, internships, and collaborations with leading U.S. universities on semiconductor research.

The PMT reflects the Department of Commerce’s commitment to due diligence and rigorous evaluation of potential projects before finalizing funding agreements. The terms of the final award may differ based on further negotiations and milestone achievements.

This partnership highlights the CHIPS and Science Act’s role in fortifying the U.S. semiconductor industry and maintaining technological leadership in critical sectors.

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U.S. Department of Commerce to Host Supply Chain Summit Focused on Strengthening Resilience and National Security

The U.S. Department of Commerce, in partnership with the Council on Foreign Relations, has announced a Supply Chain Summit to be held in Washington, D.C., on September 10, 2024. The event will bring together leaders from industry, government, academia, and civil society to discuss proactive strategies for enhancing supply chain resilience and safeguarding national security.

Read also: Fostering Resilience: U.S. Department of Commerce Commemorates Supply Chain Integrity Month

The Summit aims to shift the focus from reacting to global supply chain disruptions to implementing proactive measures that strengthen economic competitiveness. Attendees will share best practices for identifying and addressing supply chain vulnerabilities, with an emphasis on collaboration between various sectors.

A key highlight of the event will be the Department of Commerce’s introduction of its new Supply Chain Center, part of the International Trade Administration’s Industry and Analysis unit. This center is designed to merge industry expertise with advanced data analytics to develop tools for assessing supply chain risks and driving targeted actions in critical supply chains and emerging technologies.

“Securing American supply chains is vital to protecting our national security and enhancing our economic competitiveness,” stated U.S. Secretary of Commerce Gina Raimondo. “This summit will help us engage with industry and showcase the proactive strategies the Biden-Harris Administration is leading to make our supply chains more secure through data-driven tools and initiatives.”