MACOM Unveils $345M Plan for US Semiconductor Facility Upgrades
The Facts -
- MACOM plans $345M investment to modernize US semiconductor facilities.
- Up to $180M support from CHIPS Act; $165M self-funded by MACOM.
- Investment enhances RF, microwave, and millimeter wave tech leadership.
MACOM Sets Ambitious $345 Million Investment for Semiconductor Facility Upgrades
In a bold move to reinforce its position in the semiconductor industry, MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) has unveiled a strategic five-year capital investment plan totalling up to $345 million. This plan aims to revamp their wafer fabrication facilities located in Massachusetts and North Carolina.
The investment endeavor is partially supported by a preliminary agreement with the CHIPS Program Office, which outlines potential funding from the U.S. Department of Commerce through the CHIPS and Science Act. The proposed support could reach up to $180 million, combining Federal and State contributions, including $15.7 million from the Massachusetts Technology Collaborative.
The company's modernization efforts are expected to be self-funded at $165 million over the next five years, drawn from MACOM's operating cash flow. "This plan will strengthen MACOM’s domestic semiconductor manufacturing capabilities," stated Stephen G. Daly, President and CEO of MACOM.
Facility Upgrades in Massachusetts and North Carolina
In Massachusetts, MACOM will expand clean rooms and upgrade existing 100mm production lines with advanced materials like GaAs, GaN, Silicon, and other III-V materials. A new 150mm GaN-on-SiC manufacturing capability will also be introduced for cutting-edge applications.
North Carolina's facility will see similar enhancements, including the installation of 150mm wafer size production capabilities and advanced MOCVD epitaxial growth systems. Infrastructure upgrades such as HVAC, water, and power system improvements are planned for both sites.
CHIPS for America and Its Impact
CHIPS for America has so far allocated over $33 billion in proposed incentive funding, laying the groundwork for more than 125,000 jobs across 22 states. This initiative is central to President Biden and Vice President Harris’s economic agenda to invigorate domestic manufacturing and drive large-scale investment.
About Massachusetts Technology Collaborative (MassTech)
MassTech plays a key role in bolstering the tech landscape within the state by making strategic investments and fostering partnerships. The agency focuses on enhancing the tech economy's competitiveness by tapping into Massachusetts' vast talent pool.
For more information: www.masstech.org
About MACOM
MACOM specializes in high-performance semiconductor solutions tailored for Telecommunications, Industrial, Defense, and Datacenter sectors. With a wide-ranging product lineup, MACOM serves a global customer base from its headquarters in Lowell, Massachusetts. For additional details, visit www.macom.com.
Note on Forward-Looking Statements
The statements concerning MACOM's strategic plans, funding negotiations, and growth aspirations are forward-looking and subject to risks and uncertainties. Actual outcomes may vary based on various factors, including market demand and supply chain issues.
For further contact:
MACOM Technology Solutions Holdings, Inc.
Stephen Ferranti, Vice President, Corporate Development and Investor Relations
P: 978-656-2977
E: stephen.ferranti@macom.com
Source: Business Wire
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