Two North Texas technology companies are the latest beneficiaries of the CHIPS and Science Act, poised to receive more than $80 million combined as President Joe Biden prepares to leave office.
The Commerce Department announced Friday three separate preliminary memorandums of terms allocating up to $33 million to Sherman-based Coherent and up to $50 million to X-Fab, headquartered in Germany with U.S. operations in Lubbock, U.S. did.
The companies plan to use the funds to expand and modernize their facilities, creating more than 200 jobs, according to a statement. The third company, Bloomington, Minn.-based Skywater Technology, will receive up to $16 million.
Related: Sherman’s Global Wafers Project Gets $400 Million Share in US Semiconductor Subsidy
Overall, X-Fab and Coherent will benefit from large new federal investments in semiconductors, a strategically important area as a cornerstone of U.S. government industrial policy and countering China’s geopolitical influence. You will gain from both efforts.
“The Biden-Harris Administration’s bipartisan CHIPS and Science Act will make targeted investments to meet market demand for technologies critical to our national and economic security,” said U.S. Secretary of Commerce Gina Raimondo. “
“The investments proposed today across Texas and Minnesota will help strengthen domestic chip production and secure our supply chain for decades to come,” she added.
Republican Sen. John Cornyn, one of the authors of the CHIPS Act, said the funding would “strengthen this fragile supply chain, strengthen our national security and global competitiveness, and create new jobs for Texans.” The company said in a statement that it will provide support as a means to “create new ideas.” .
“The chip manufacturing capabilities enabled by these resources at Coherent in Sherman will help the United States regain a leadership role in the all-important semiconductor industry, and we look forward to seeing further Texas-led progress in the coming years. I am.”
The latest grant comes on top of $2 billion already paid for two semiconductor projects in Sherman, north of Washington, D-FW. Taiwanese company Globiwafer has raised $400 million for a wafer fab it plans to build in the Texas city, which it plans to share with another facility in Minnesota. Dallas-based Texas Instruments also received $1.6 billion through the CHIPS and Science actor for two semiconductor factories it is building in Sherman.
The Biden administration has scrambled in recent days to secure as much funding for chip-related activities as possible before leaving office.
Although President-elect Donald Trump harshly criticized the CHIPS Act during the 2024 presidential campaign, some analysts believe he will largely maintain control, even tinkering with the elements he deems most objectionable. are.
Correction, Dec. 6, 2024, 5:45 p.m.: A previous version of this article contained incorrect dollar numbers. Texas Instruments received $1.8 billion from CHIPS and the Science Act.
