Entegris inks a $75 million preliminary deal with the Biden administration to develop a new chip manufacturing facility in Colorado Springs, enhancing U.S. semiconductor production.
Bollywood Fever: American chip manufacturing supplier Entegris announced on Wednesday that it has reached a preliminary agreement with the Biden administration to receive up to $75 million in funding. This financial support will aid the development of a new facility in Colorado Springs, Colorado.
“We’re not just bringing leading-edge chip technology and factories to the United States, we’re also bolstering the suppliers that make leading-edge manufacturing possible,” said U.S. Secretary of Commerce Gina Raimondo in a statement.
This announcement is part of a broader initiative under the Chips and Science Act, aimed at expanding domestic chip production and diverting capital away from potential investments in China and other regions. Major beneficiaries of this initiative include South Korea’s Samsung, U.S.-based Intel, and Taiwan’s TSMC.
In 2022, Congress approved the Chips and Science Act, allocating $52.7 billion for research and manufacturing subsidies to boost domestic semiconductor output. Additionally, lawmakers approved $75 billion in government loan authority to further support this effort.
According to the Commerce Department, the first phase of Entegris’ Colorado Springs project will support the production of liquid filter membranes and Front Opening Unified Pods (FOUPS). These specialized containers, invented by Entegris, secure semiconductor wafers during transportation in the manufacturing process. Leading chipmakers such as Intel, TSMC, Micron, and GlobalFoundries are FOUP customers, the agency noted.
The second phase of the project will focus on the production of advanced liquid filters, purifiers, and fluid handling solutions, further enhancing the capabilities of the domestic semiconductor supply chain.
Entegris has previously supplied products to sanctioned Chinese chip manufacturer SMIC. In February, Reuters reported that the Commerce Department halted millions of dollars worth of shipments of chipmaking materials and parts from Entegris to SMIC’s most advanced facility. This action followed SMIC’s production of a sophisticated chip for Huawei’s Mate 60 Pro phone, highlighting the ongoing complexities in the global semiconductor industry.
The new Entegris facility in Colorado Springs represents a significant step forward in bolstering the U.S. semiconductor supply chain, ensuring that American chip manufacturers have access to critical materials and components necessary for advanced manufacturing. This development underscores the importance of domestic production capabilities in maintaining technological leadership and economic security.
Source: Reuters
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